innogy steps up growth initiatives – capex budget planned for 2018 rises by more than 25 per cent to over 3.0 billion euros

Adjusted net income of above 1.1 billion euros forecast for 2018

innogy expects 2017 adjusted EBITDA and adjusted EBIT to be slightly lower than anticipated so far

Adjusted net income still expected to be above 1.2 billion euros in 2017

Today, the Executive Board and the Supervisory Board of innogy SE agreed on the budget for fiscal 2018. With this, innogy is setting the course for the future. The Executive Board released its forecast for 2018 on this basis. Development in the coming fiscal year will be characterised above all by increased ramp-up costs for strategically important projects such as digitisation and by substantially higher investments in future-oriented business fields such as e-mobility, renewable energy, and broadband. Furthermore, the non-recurrence of positive one-off effects felt in 2017 will have an impact on earnings.

Peter Terium, Chief Executive Officer of innogy SE: “We are a trailblazer of change. We do not wait to see what happens – we set trends. This is why we have deliberately decided to make huge investments in the future and banking on e-mobility, renewable energy and ultrafast internet. We are driving the energy transition in Germany and at the international level. High growth ambitions initially come at a price, but pay off in the long run. At the same time, we are making all our divisions fit for the digital future. And that does not come for free, either. Even if this will weigh on our earnings short-term, I am convinced that this is the right strategy for setting up innogy optimally for the future – entirely in the interests of our shareholders, customers and employees.”

Adjusted EBIT at the Group level is expected to total about 2.7 billion euros in 2018. Reduced earnings prospects cloud expectations compared to 2017 in the retail business. Adjusted EBIT is also expected to be slightly down year on year in the grid business, where innogy benefited from positive weather-related effects in 2017 particularly in Eastern Europe. Special items had a positive impact on both divisions in 2017, the extent of which will not recur in 2018. The Renewables division is expected to display stable development. From today’s perspective, the Group’s adjusted net income is expected to be above 1.1 billion euros. innogy continues to base its dividend on a payout ratio of 70 to 80 per cent of adjusted net income. To spur growth, innogy plans to increase capital expenditure by at least 25 per cent in 2018 to over 3.0 billion euros compared to the current fiscal year.

Furthermore, innogy SE made a slight adjustment to its forecast for the current financial year 2017 today. Now innogy anticipates adjusted EBITDA in the order of about 4.3 billion euros (previously about 4.4 billion euros) and adjusted EBIT of about 2.8 billion euros (previously 2.9 billion euros). This is primarily due to the persistently difficult market environment in the UK retail business. Here, the measures of the ongoing restructuring programme are not sufficient to offset negative market effects. Moreover, there has been a rise in costs at the Group level incurred for central future-oriented projects, e.g. digitisation and process optimisation, as well as expenses associated with growth initiatives, e.g. in the field of e-mobility. Additional efficiency measures can only partially offset this development. As before, adjusted net income is expected to be above 1.2 billion euros, albeit not significantly.

It had already become apparent over the course of 2017 that the earnings prospects in the UK retail business are still dim. By the end of the third quarter of 2017, npower managed to implement about 150 million euros in cost-cutting measures via the restructuring programme that was launched in 2016. However, the market environment remains tight. Many customers can only be retained by switching them to tariffs with more favourable conditions. Furthermore, higher run-up and procurement costs cannot be fully passed through to customers. innogy no longer expects the additional efficiency measures to suffice to fully offset the earnings shortfalls throughout the entire retail business. In addition, innogy has stepped up its growth ambitions in the field of e-mobility even more this year. innogy now anticipates adjusted EBIT in the retail business in the order of about 800 million euros.

The earnings outlook in Grid & Infrastructure (adjusted EBIT of about 1,900 million euros) and Renewables (adjusted EBIT of about 350 million euros) remains unchanged.

At about 2.7 billion euros in adjusted EBIT, the earnings expected in fiscal 2018 are down year on year. This is predominantly due to higher ramp-up costs for future-oriented projects. Moreover, lower earnings in the retail business in Germany will have an impact, where innogy benefited from positive effects in earlier years – in particular of the reversal of provisions in connection with legal risks. The UK retail business will probably be stated as a ‘discontinued operation’ (DCO) from some point in 2018 onwards. Therefore, its earnings will no longer contribute to the Group’s adjusted EBIT and will instead be stated separately in the reconciliation to net income. This is because of the agreement reached in November 2017 to merge innogy’s British retail business npower with SSE’s household energy and energy services business in Great Britain to form an independent listed British energy retail company. innogy will hold a minority stake of 34.4 per cent in the combined retail company. In the other retail markets, innogy will continue to focus on efficiency-enhancing measures with the aim of defending its good market positions. innogy anticipates that the Retail division will achieve an adjusted EBIT of about 700 million euros in 2018.

In the Grid & Infrastructure division, innogy benefited from the relatively cool weather in Eastern Europe in 2017. As usual, normalised weather conditions are assumed in the 2018 budget. The beginning of the new gas regulation period in 2018 in Germany will also have a negative effect on earnings. Furthermore, one-off effects felt in 2017, resulting among other things from reversals of provisions, are not expected to affect the coming year as positively as the current one. Moreover, the gas storage business continues to face a challenging market environment and is expected to experience a further shrinkage in margins. In sum, this division’s adjusted EBIT is currently expected to total about 1,850 million euros.

innogy anticipates that the Renewables division will post earnings in 2018 on a par with fiscal 2017, thus an adjusted EBIT of about 350 million euros. This is based on normalised weather conditions. Below-average wind and precipitation levels are weighing on earnings in the financial year underway. Furthermore, innogy intends to put more capacity online, including the full commissioning of the Galloper offshore wind farm in the United Kingdom (353 megawatts; innogy share: 25 per cent). The fact that innogy benefited from the one-time effect of the revaluation of the Triton Knoll offshore wind project following the initial full consolidation in 2017 will have a counteracting effect.

innogy expects expenses in the Corporate/other segment to be lower than in 2017, although high project costs – incurred for example for the digitisation and modernisation of IT systems and their separation from RWE – will continue to curtail earnings.

The adjusted financial result anticipated by innogy is in the order of about minus 750 million euros, as positive one-off effects felt in 2017 will not recur. The effective tax rate used to calculate adjusted net income is estimated to range between 25 and 30 per cent.

As a result, adjusted net income will also be weaker than in 2017. innogy currently anticipates a figure of above 1.1 billion euros.

More than 3.0 billion euros in capital expenditure planned in 2018

The Executive Board of innogy SE has approved a capex budget of over 3.0 billion euros for fiscal 2018, more than 25 per cent above the figure expected for 2017.

The expansion and modernisation of network infrastructure will continue to be a focal point of innogy’s investing activity in 2018. Besides maintenance, the connection of distributed generation assets and grid expansion in relation to the energy transition will take centre stage. Moreover, innogy intends to continue to grow in the field of broadband technology – in Germany as well as in Eastern Europe.

As regards renewables, innogy intends to further expand its capacity in the years ahead. Owing to the successful participation in this year’s UK auction for the subsidisation of renewable energy, the Triton Knoll offshore wind project (innogy share: 100 per cent) with a planned capacity of 860 megawatts will be a major capex target. At present, innogy is assessing various options for commercially optimising the project, including partnership models and financing structures. The final investment decision for Triton Knoll is set to be taken in mid-2018. Also in 2018, onshore works are scheduled to begin to provide the grid connection. Based on current plans, commissioning of the wind farm could be started in 2021. The planned investment volume amounts to approximately 2.0 billion British pounds (roughly equivalent to 2.2 billion euros, based on the current exchange rate). Growth in onshore wind is to focus strongly on the US where concrete investment options are currently being evaluated. Concrete investment options in various markets are also being explored in the field of solar power, with a view to establishing this field of business.

Capital expenditure in the retail business will focus above all on the modernisation of IT infrastructure. In e-mobility, all signals point to growth: innogy intends to strengthen its good starting position even more. In 2018, this business field requires investments to accelerate growth, but as expected will not yet generate significant earning contributions in the short term. In addition to organic growth, options to supplement the portfolio through selective acquisitions are also being explored – especially in Europe and North America.

Legal disclaimer

This document contains forward-looking statements. These statements reflect the current views, expectations and assumptions of the management, and are based on information currently available to the management. Forward-looking statements do not guarantee the occurrence of future results and developments and are subject to known and unknown risks and uncertainties. Therefore, actual future results and developments may deviate materially from the expectations and assumptions expressed in this document due to various factors. These factors primarily include changes in the general economic and competitive environment. Furthermore, developments on financial markets and changes in currency exchange rates as well as changes in national and international laws, in particular in respect of fiscal regulation, and other factors influence the company's future results and developments. Neither the company nor any of its affiliates undertakes to update the statements contained in this notification.

At its session today, the Supervisory Board of innogy SE agreed on a successor to Dr Werner Brandt as member and Chairman of the Supervisory Board of innogy SE: the name of Dr Erhard Schipporeit has been submitted to the Local Court with competence for the appointment of Dr Brandt’s successor. The change of incumbent will apply from 1 January 2018, or from the actual date of appointment by the court if later than 1 January. The required application has been submitted to the court.

Dr Werner Brandt, member and Chairman of the Supervisory Board of innogy SE, has resigned from his positions on the Supervisory Board for personal reasons with effect from 31 December 2017.

]]>Press,Unternehmen,CompanyWed, 13 Dec 2017 14:26:18 +0100innogy International Middle East pushes the Smart Living transformationhttp://news.innogy.com/innogy-international-middle-east-pushes-the-smart-living-transformation/
http://news.innogy.com/innogy-international-middle-east-pushes-the-smart-living-transformation/> Refined strategy with focus on Smart Cities, Smart Energy and Smart Business
]]>His Excellency Saeed Mohammed Al Tayer, MD & CEO of the Dubai Electricity and Water Authority (DEWA) and Chairman of innogy IME, and Peter Terium, CEO of innogy SE have endorsed the new strategy for their Joint Venture company innogy International Middle East (innogy IME) during thisyear’s 8th Dii Desert Energy Leadership Summit in Dubai.

“In adherence with the UAE National Innovation Strategy, launched by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, to transform the UAE into one of the most innovative countries in the world, and to support the Smart Dubai initiative of His Highness to make Dubai the happiest and smartest city on Earth, we have launched many promising programmes, initiatives and projects. We envisage the world of tomorrow as greener, smarter and more digital, with a high quality of life and happiness to achieve Smart Living. The utility of the future will not be the utility of the past, but instead will be an infrastructure and service provider for Smart Living. Our Joint Venture will play a major role in leading the Smart Living transformation in the Middle East and beyond,” explained His Excellency Saeed Mohammed Al Tayer, MD & CEO of DEWA and Chairman of innogy IME.

“We aim to be a leader of the Smart Living transformation. Therefore, innogy IME will focus on Consulting & Ventures in the three pillars of Smart Living: Smart Cities, including e.g. Smart street furniture and autonomous driving, Smart Energy, including e.g. innovative solar solutions, energy management services as well as Smart Business, including e.g. Artificial Intelligence, Blockchain technology and robot process atomization,” said Pierre Samaties, Managing Partner & CEO of innogy International Middle East.

The Consulting business line, which already is well established in the Middle East, serves as an amplifier for market insights, client relationship and access to talent. As a trusted advisor of the Middle East Energy industry innogy IME has a strong track record of implementing important strategic projects, like the “Dubai Clean Energy Strategy 2050” as well as innovative projects for the regions digital and green economy. Next to Consulting the Venture business line will focus on company building, start-up investment and incubation and cooperation with innovative companies in the world.

The strategy endorsement meeting was made in the presence of His Excellency Saeed Mohammed Al Tayer, MD & CEO of the Dubai Electricity and Water Authority (DEWA) and Chairman of innogy IME, and Peter Terium, CEO of innogy SE, Waleed Salman (Vice-Chairman innogy IME, EVP Business Development & Excellence DEWA), Pierre Samaties, (CEO of innogy IME), Paul von Son (Country Chair MENAT innogy SE, Member of the Board of innogy IME) and Timur Gapurov (Director Portfolio Management, DEWA).

Further information aboutinnogy International Middle East LLC: www.innogy.ae

innogy is rigorously implementing its strategy for sustainable growth. Just a few weeks after presenting its redefined 4P strategy (Performance, Portfolio, Position and Partnership), innogy announced last week a strong new partnership on the UK retail market together with SSE (see press release of 8 November 2017). In addition, innogy SE is today publishing solid figures for the first nine months of fiscal 2017.

As expected, innogy increased its result in the first nine months of 2017: adjusted EBITDA was about EUR 3.1 billion. Net of operating depreciation and amortisation, innogy posted adjusted EBIT of about EUR 2.0 billion. These figures are up 5 and 9 per cent, respectively, year on year. Adjusted net income was up as much as 27 per cent, to EUR 850 million. Besides the positive development in the operating earnings, the significant improvement in the adjusted financial result came to bear here in particular.

With its acquisition of Belectric at the beginning of the year, innogy announced a major success in the area of solar energy. This was followed in September by a record-setting commitment from the Federal Ministry of Transport and Digital Infrastructure (BMVI) to subsidise 1,245 new charging stations, which will strengthen innogy’s position as a leading operator of charging infrastructure for electric mobility in Germany. A further milestone was the winning of a tender for the Triton Knoll wind farm project, off the English east coast: innogy is now the sole owner of this highly attractive renewable energy project. The wind farm has a planned installed generating capacity of 860 megawatts and will be able to supply the equivalent of an expected minimum of 800,000 UK households p.a. with renewable electricity.

The capital market is acknowledging these achievements, innogy CFO Günther observes: “The issuance of our first senior bond with a volume of EUR 750 million in April represented an important step on the way to financial independence for innogy; as did setting up our stand-alone credit line as a liquidity reserve. The capital market appreciates our financial independence. Shortly afterwards, Standard & Poor’s upgraded our rating to BBB. That will certainly have helped when we issued our green bond in October. Germany’s first benchmark-sized corporate green bond was several times oversubscribed.”

As at 30 September 2017, innogy employed 42,224 people (converted to full-time positions). They generated external revenue of around EUR 30.8 billion, which was down about 2 per cent year on year.

For the full year, innogy expects adjusted net income to total over EUR 1.2 billion. The Executive Board is still applying a payout ratio of 70 to 80 per cent as the basis for the dividend.

Positive development of earnings in grid business in particular

The grid business was the main driver of the earnings growth achieved in the first nine months of 2017. Adjusted EBIT for the Grid & Infrastructure division increased by 19 per cent, to EUR 1,424 million. This was influenced mainly by lower expenses for operating and maintaining innogy’s grids in Germany. In addition, in the first quarter of 2016, provisions had been accrued in this segment for partial retirement measures. In Eastern Europe, cooler weather conditions compared to last year’s corresponding period, among other things, had a positive impact on earnings as well. They drove up volume on the gas distribution networks, especially in the Czech Republic.

Adjusted EBIT for the Renewables division was down 20 per cent to EUR 194 million. This was mainly due to below-average wind and precipitation levels during the first nine months of the year. In addition, positive one-off effects in the previous year did not recur. The depreciation of the British compared to the euro also had a negative impact. A positive effect by contrast was felt from the commissioning of new onshore wind farms.

At EUR 570 million, adjusted EBIT in the Retail division was up 4 per cent year on year: while efficiency-enhancing measures and cost reductions had a particularly positive effect on earnings in the Retail Germany segment, reduced customer numbers and declines in sales in the Retail Netherlands/Belgium segment were evident in the year-on-year comparison. This was compensated for by curbing costs and applying efficiency-enhancing measures. The Retail business in Eastern Europe benefited from the cooler weather in the Czech Republic in particular, which improved earnings compared with the previous year. There was a decline in earnings in the Retail United Kingdom segment: the restructuring programme initiated at the beginning of 2016 led to a reduction in the cost base in the first nine months of 2017; however, the competitive landscape in the UK retail business remains very tough and pressure on margins is very high. The UK government has initiated recently the legislative process to introduce a general price cap for standard variable tariffs and is proposing an expansion of the existing price cap for vulnerable households.

As part of the annual impairment test, a goodwill impairment of EUR 480 million for the UK retail business was recognised. This impairment reflects the deterioration in commercial assumptions and tougher regulatory conditions. The planned merger of the retail activities of innogy and SSE in Great Britain did not lead to a different assessment of the impairment.

Electricity sales volume up 8.1 per cent, gas supply volume down 4.1 per cent year on year

In the first nine months of 2017, innogy sold 193.1 billion kWh of electricity to external customers, 8.1 per cent more than in the same period last year. This was mainly the result of winning new customers in business with German distributors as well as supplying more electricity to existing customers. Conversely, in the United Kingdom and the Netherlands/Belgium, innogy lost residential and small commercial customers to the competition.

Gas sales declined by 4.1 per cent to 153.1 billion kWh: this was predominantly due to a decrease in gas sales to residential and commercial customers.

Capital expenditure up 12 per cent

innogy’s capital expenditure in the first nine months of 2017 rose by 12 per cent to EUR 1,244 million year on year. This was mainly due to the acquisition of the international solar and battery specialist Belectric. The expansion and modernisation of its grid infrastructure continue to be a focal point of the company’s investing activity. Along with maintenance, the focus is on the connection of decentralised generation assets and network expansion in relation to the energy transition. Furthermore, innogy spent capital on various onshore wind projects in the United Kingdom and Germany. Additional capital was also invested in the expansion of broadband activities.

Net debt at EUR 16.0 billion

As at 30 September 2017, innogy’s net debt totalled EUR 16.0 billion, representing an increase of around EUR 0.2 billion compared to 31 December 2016. Net financial debt rose by EUR 0.8 billion as of 30 September 2017, as the operating cash flows did not cover the capital expenditure and dividend payments. This effect is mitigated by the decline in provisions for pensions from EUR 3.9 billion to EUR 3.4 billion. The main reason for this was the change in market interest levels, which is also reflected in innogy’s discount rates.

Standard & Poor’s (S&P) raises innogy’s rating

Rating agency S&P has reassessed innogy SE’s creditworthiness and upgraded the rating for the long-term liabilities and senior bonds of innogy SE from BBB- with a positive outlook to BBB with a stable outlook. With this upgrade, S&P has recognised the financial independence of innogy, which has been given a solid investment grade rating by all three of the major rating agencies.

Headcount up slightly

As at 30 September 2017, innogy employed 42,224 people (converted to full-time positions), a net increase of 1,600 compared to 31 December 2016. The rise primarily stemmed from personnel transfers from the German locations of RWE companies to the innogy Group as part of the reorganisation of the entire RWE Group. These processes have now been largely completed. The acquisition of Belectric also increased the headcount by approximately 550.

innogy maintains the outlook for this year’s business performance, which was first published on 13 March 2017 and confirmed on 12 May and 11 August. It anticipates that the innogy Group will achieve about EUR 4.4 billion in adjusted EBITDA and about EUR 2.9 billion in adjusted EBIT. From today’s perspective, adjusted net income is expected to total over EUR 1.2 billion.

Nevertheless, there are still some uncertainties in relation to innogy’s UK retail business in particular. The difficult market conditions and political pressure have intensified over the course of the year. Measures to reduce costs within the scope of innogy’s restructuring programme will help it to partially offset negative market effects, but it does not expect this segment to generate positive adjusted EBIT in 2017. Overall, in the Retail division, innogy intends to counter this with additional efficiency measures and therefore currently maintains its outlook. It remains to be seen, however, how the competitive situation will develop in the United Kingdom in the coming weeks. In the current regulatory environment, it appears unlikely that higher procurement and run-up costs can be passed on to customers.

In the Renewables division, innogy intends to continue expanding its capacities. The offshore project Nordsee One (near the island of Juist, Germany) will be fully commissioned in the fourth quarter and generating green electricity at its full capacity. innogy will also be connecting more and more turbines from the Galloper offshore wind farm (situated near the coast of Suffolk, England) to the grid. The negative foreign exchange trend in the United Kingdom and the non-recurrence of positive one-off effects felt last year will have an opposing impact. Moreover, below-average wind and precipitation volumes in the first nine months will have a detrimental effect. innogy is able to confirm its outlook because it will record a positive effect of EUR 46 million in the fourth quarter from the revaluation of its shares in the Triton Knoll offshore project. This revaluation is prompted by the acquisition of Statkraft’s 50 per cent stake in the project.

In the Grid & Infrastructure division, the development will mainly be characterised by lower costs incurred to operate and maintain innogy's grids. Furthermore, innogy accrued provisions for partial retirement measures last year.

In the Renewables division, the commissioning of new capacity will have a positive effect. The negative foreign exchange trend in the United Kingdom and the non-recurrence of positive one-off effects felt last year will have an opposing impact. The division will therefore probably close fiscal 2017 slightly down year on year.

In the Grid & Infrastructure division, the development of the result will mainly be characterised by the positive effect of lower costs incurred to maintain and operate innogy’s grids. Furthermore, provisions were accrued last year for partial retirement measures. An increase in the result is expected as a consequence.

The situation in the UK retail business remains very tense due to the fierce competition and political pressure. Measures to reduce costs within the scope of the restructuring programme will help to partially offset negative market effects. However, the Retail United Kingdom segment is not expected to generate positive adjusted EBIT in 2017. Overall, in the Retail division, innogy intends to counter this with additional efficiency measures and therefore currently maintains its outlook. The forecast does not take account of potential further regulatory intervention in the UK retail business, for example by way of a price cap on standard variable tariffs.

Legal disclaimer

This document contains forward-looking statements. These statements are based on the current views, expectations, assumptions and information of the management, and are based on information currently available to the management. Forward-looking statements shall not be construed as a promise for the materialization of future results and developments and involve known and unknown risks and uncertainties. Actual results, performance or events may differ materially from those described in such statements due to, among other things, changes in the general economic and competitive environment, risks associated with capital markets, currency exchange rate fluctuations, changes in international and national laws and regulations, in particular with respect to tax laws and regulations, affecting the Company, and other factors. Neither the Company nor any of its affiliates assumes any obligations to update any forward-looking statements.

Transaction subject to approvals from innogy Supervisory Board, SSE shareholders as well as competition and regulatory authorities

Closing of the transaction expected in late 2018 / early 2019

innogy SE and SSE plc have agreed to merge innogy’s British retail business npower with SSE’s household energy and energy services business in Great Britain to form a major, independent British retail energy company. The combined retail company shall be listed on the premium segment of the London Stock Exchange. It will not be controlled by either innogy or SSE: innogy will hold a minority stake of 34.4 per cent in the combined retail company. SSE plans to demerge its stake of 65.6 per cent to its shareholders upon completion of the transaction. The transaction is still subject to the approval of the Supervisory Board of innogy and of SSE’s shareholders, as well as approval by competition and regulatory authorities.

SSE’s business retail (B2B) and its Ireland businesses would not be included in the combined retail company. Completion of the transaction and the listing of the new retail energy company are expected to occur in the last quarter of 2018 or the first quarter of 2019, provided all necessary approvals for the mergers are achieved by that time. Until the merger of npower and SSE’s domestic retail businesses becomes effective, the business operations of both npower and SSE will remain completely independent.

The services offered by the combined retail company shall not only include electricity and gas supply to domestic and business customers, but also a wide range of energy solutions including energy-related home services as well as business solutions.

Peter Terium on innogy’s further perspectives on the UK energy market:

Green Bond issuance worth €850 million with a coupon rate of 1.25 % matures in 2027

Proceeds used to refinance on- and offshore wind projects

Reviewed by ESG agency Sustainalytics

Today innogy successfully placed the first German corporate Green Bond in benchmark size. innogy’s inaugural Green Bond is an interest-bearing security, whose issue proceeds are used to refinance sustainable projects.

The Green Bond Framework set up by innogy encompasses renewable as well as energy efficiency and eMobility projects. The internationally recognized ESG agency Sustainalytics confirmed that innogy is well positioned to issue Green Bonds, and that the innogy Green Bond Framework is robust and transparent. It is in alignment with the Green Bond Principles 2017 published by the International Capital Market Association (ICMA).

The proceeds of innogy´s first Green Bond will be used to refinance four offshore projects in the UK and Germany and one onshore project in the Netherlands. These wind farms are under construction or already in operation. The annual expected electricity production of all wind farms is about 3 TWh. They generate sufficient CO2-free electricity to supply approximately 830,000 households.

Bernhard Günther, Chief Financial Officer of innogy SE, is pleased with the issuance: “innogy is a sustainable company by conviction and business model. Setting up a Green Bond Framework and issuing the first benchmark corporate Green Bond in Germany is a logical step to underline this position.”

With a volume of €850 million and a 10 year maturity, the senior bond was placed via innogy Finance B.V. and guaranteed by innogy SE. Based on a coupon of 1.25 % p.a. and an issue price of 98.987 % the yield-to-maturity amounts to 1.36 % p.a. The transaction was met with strong interest from investors and was oversubscribed several times.

In addition to this successful issuance of innogy's first Green Bond, the company achieved its financial independence from RWE at the end of last week by signing its own €2 billion credit line. This was appreciated by the rating agency S&P with a rating upgrade from BBB- to BBB. Positive capital market reactions were also achieved for the complete takeover of the offshore wind power project Triton Knoll.

Rating agency S&P has upgraded innogy SE in its latest review. S&P now assigns innogy SE a corporate rating of BBB, stable outlook (before BBB-, outlook positive). The short term rating has been upgraded to A-2 (from A-3).

Bernhard Günther, CFO of innogy SE: “Around a year after the IPO, innogy has already gained a good reputation on the capital market. I am delighted that all of the main rating agencies have given innogy SE a solid Investment Grade rating. With the upgrade announced today, S&P is recognising our financial

innogy has achieved the last step to complete its independent funding structure and to release the link to RWE’s credit line. On 6 October 2017, innogy signed a stand-alone credit agreement of €2 billion. The syndicated credit line has been provided by an international consortium consisting of 22 banks.

Bernhard Günther, Chief Financial Officer of innogy SE, says: “This transaction constitutes an important milestone for innogy. On the one hand it shows the confidence of our banking partners in a long-term cooperation. On the other hand we are now fully financially independent from RWE.”

The initial term of the credit line is five years (until 2022), with two renewal options after the first and second year and an increase option allowing innogy to access a further €1 billion upon request. The new credit line replaces the existing participation in RWE´s credit line, which was terminated at the same time.

The Board of innogy has defined a target picture for the year 2025 as part of the refined version of the company’s corporate strategy. Priority is given to the areas of (market) Position, Performance and Portfolio, with innogy aiming to be among the three leading providers (Position) and among the most profitable companies in the industry (Performance) in all relevant markets by 2025. To achieve this goal, there will be no taboos with regard to current business activities (Portfolio). In addition, all activities are intended to address the future energy system. As a result, innogy will pursue a partnership-based approach. innogy will become or remain the number 1 energy partner for customers, municipalities as well as corporate and financial partners (Partnership).

Europe will remain the company’s home region. However, the company will seek to achieve growth through investments in Europe as well as North America. The Supervisory Board consensually took note of the refined strategy at its meeting today.

In order to achieve a top 3 position in all relevant markets, innogy must drive growth on its own but also pursue an active portfolio policy. As a result, in its existing businesses the company seeks to grow at least as fast as the overall market and, ideally, to gain additional market shares. Beyond this, innogy intends to build up a strong market position in three important growth areas: eMobility, photovoltaics and glass fibre networks (FTTx). To develop these growth markets and the industry-leading Innovation Hub up to €1.2 billion in investments are planned by 2019.

In eMobility, innogy currently operates around 5,800 charging points in more than 20 countries. As a full-service provider, it offers the entire range of services – from planning, construction, operation and maintenance through to invoicing. In addition, the company has played a significant role as co-developer of the "Combined Charging System", the international charging standard for electric vehicles. innogy sees an opportunity to create a global standard and thus a global platform, while becoming the leading provider of eMobility solutions in Europe and the US.

In the photovoltaics sector, innogy’s Belectric holding means its portfolio already contains one of the leading companies active in the construction of large-scale solar power plants. Its declared objective is to build a strong market position in Europe, North America and selected emerging countries in the still highly fragmented market for greenfield photovoltaics.

In the glass fibre networks sector, where Germany has considerable backlog, innogy is looking to significantly increase the pace of expansion yet again. Additionally, innogy evaluates projects abroad. As an energy supplier with profound technical expertise for infrastructures and many partnerships at municipal level, the company is virtually predestined to drive the expansion of optical data lines.

Beyond these organic growth initiatives, innogy will also strengthen its portfolio through acquisitions and divestments. It will dispose of business activities where the company is not leading in terms of market ranking (Position) and profitability (Performance) or where leadership cannot be achieved. innogy will recycle capital to invest in markets and companies in which it can achieve a top 3 position and a high level of earnings contribution This active portfolio policy will also see the company increasingly cooperate with strategic partners and financial investors.

In addition to its active portfolio policy, innogy is particularly focused on being a cost leader in order to sustainably improve the company's profitability and overall performance. The stated objective is to become best in class at all operational levels. Consequently, a much stronger performance culture is set to be established across all segments.

]]>Unternehmen,PressThu, 21 Sep 2017 14:00:02 +0200innogy successful in UK auction with Triton Knoll offshore wind projecthttp://news.innogy.com/innogy-successful-in-uk-auction-with-triton-knoll-offshore-wind-project/
http://news.innogy.com/innogy-successful-in-uk-auction-with-triton-knoll-offshore-wind-project/> innogy and Statkraft each hold 50 per cent of the wind farm with a planned installed capacity of 860 megawatts
> Final investment decision planned for mid-2018
> Capital expenditure expected to total approx. £2 billion
> Start of commissioning scheduled for 2021
]]>innogy is relying on the expansion of renewable energies to grow its business activities. Today the company moved a step closer to the realisation of what is currently one of its largest development projects: Triton Knoll, an offshore wind project with a planned installed capacity of 860 megawatts, won a tender from the UK Department for Business, Energy & Industrial Strategy (BEIS) in the latest auction round to support renewable energy projects (Contract for Difference). The project is one of the most cost-effective and most competitive offshore wind projects of the latest auction in the UK. It is being managed by innogy, and innogy and Statkraft each hold a 50 per cent stake. The strike price awarded is £ 74.75 per megawatt hour.

Peter Terium, CEO of innogy SE, says: “I am very pleased that Triton Knoll has been successful in the latest UK auction. Together with our partner Statkraft, we have passed an important milestone on the way to realising our offshore wind power project and also proved that we can be successful in a very competitive market environment. A large proportion of our planned investment in growth is intended to flow into renewable energies. Together with our grid and retail businesses, they will make innogy the innovative, decentralised and sustainable energy company of the future.”

Hans Bünting, COO Renewables of innogy SE, adds: “Today innogy is already one of the large operators of wind power plants in Europe – onshore and offshore. Triton Knoll’s auction success confirms the excellent work we have done in recent years. Thanks to our extensive know-how in the development as well as the construction and operation of complex offshore projects and our varied research and development activities we have succeeded in developing a valuable project and in further reducing the costs for offshore wind energy in the UK.”

Today innogy already operates renewable energy plant with a total generating capacity of roughly 3.7 gigawatts, including over 900 megawatts from offshore wind. In the years 2017 to 2019 innogy intends to invest €1.5 billion to €1.7 billion in renewable energies.

The planned wind farm, located 32 kilometres off the coast of Lincolnshire in the east of England, has already been fully approved. The location offers good, proven wind conditions and moderate average water depths of 18 metres. The final investment decision for Triton Knoll is expected to be made inmid-2018. Until then the financing process will be finalized and contracting agreements completed with the project’s supply chain partners. Also in 2018, onshore works are scheduled to begin to provide the grid connection. Offshore construction is expected to start in 2020. According to current planning, commissioning of Triton Knoll will be started in 2021.

The wind farm has a planned installed generating capacity of 860 megawatts and will be able to supply the equivalent of an expected minimum of 800,000 UK households p.a. with renewable electricity. The planned investment volume amounts to approximately £2 billion (which corresponds to roughly €2.2 billion at the current exchange rate).

Support of new renewable energy projects in the UK based on the contract for difference principleSince 1 April 2015, new renewable energy plant in the UK is supported on the basis of a mechanism known as “contract for difference” (CfD). In the current auction round from 14 to 18 August 2017 qualified bidders were able to apply for support for their projects. The CfD mechanism envisages green electricity projects receiving support over 15 years, during which time they receive a guaranteed remuneration for the electricity they generate. The electricity is sold on the wholesale market. If the price achieved there is below the remuneration awarded in the CfD auction, the difference is reimbursed to the company. If the price achieved is higher, the company has to make a corresponding payment. The companies that are successful in the auction receive the highest price awarded in the auction per generated megawatt-hour for a period of 15 years – independent of the price they tendered in the auction. The total annual budget used to support a specific technology is limited. That is why only the most cost-effective projects are successful.

Adjusted EBIT and adjusted net income up 4 and 16 per cent respectively

Strategic focus on stable income and value-added growth

Rigorous expansion of new business in USA

innogy is on the right path: Step by step, it is delivering on the promises made at the time of the IPO. During the first half of 2017, innogy increased its result as expected:Adjusted EBITDA was about EUR 2.4 billion, up 2 per cent year on year. Net of operating depreciation and amortisation, innogy posted adjusted EBIT of about EUR 1.7 billion, an increase of 4 per cent compared to the same period last year. Adjusted net income was up as much as 16 per cent, to EUR 857 million. Besides the rise in operating earnings, in particular the significant improvement in the adjusted financial result came to bear here.

The company’s robust risk profile has also been acknowledged by the rating agencies, which assign a solid investment grade to innogy ­– Moody’s gave innogy a Baa2 rating at the end of June.

As at 30 June 2017, innogy employed 41,944 people (converted to full-time positions). It generated external revenue of around EUR 21.7 billion, which was down 5 per cent year on year.

Terium says there are three main topics on the agenda for the second half of fiscal 2017:

Positive development of earnings in grid business in particular

The grid business was the main driver of the earnings growth achieved in the first half of 2017. Adjusted EBIT from the Grid & Infrastructure division increased by 19 per cent, to EUR 1,094 million. This was influenced mainly by lower expenses for operating and maintaining innogy’s networks in Germany. In addition, in the first quarter of 2016, provisions had been accrued in this segment for partial retirement measures. In Eastern Europe, cooler weather conditions compared to last year’s corresponding period, among other things, had a positive impact on earnings as well. They drove up volume on the gas distribution networks, especially in the Czech Republic.

Adjusted EBIT in the Renewables division was down 18 per cent to EUR 179 million. This was primarily due to below-average wind and precipitation levels during the first half of the year. In addition, positive one-off effects in the previous year did not recur. The devaluation of the British pound compared to the euro also had a negative impact. A positive effect by contrast was felt from the commissioning of new onshore wind farms.

At EUR 588 million, adjusted EBIT in the Retail division was 8 per cent down year on year: While efficiency-enhancing measures and cost reductions had a particularly positive effect on earnings in the Retail Germany segment, earnings in the Eastern European retail business remained stable. Conversely, the Retail Netherlands/Belgium segment was characterised by a drop in customer figures and sales, which was only partially offset by lower costs and efficiency measures. There was also a decline in earnings in the Retail United Kingdom segment: The restructuring programme initiated at the beginning of 2016 led to a reduction in the cost base in the first six months of 2017, but the competitive landscape there remains very tough in the retail business. Following customer losses in the first quarter, however, some 50,000 new customers were acquired during the second quarter. Improved service performance also came to bear here: There was a marked reduction in the number of customer complaints. Of the Big 6 energy companies in the United Kingdom, innogy’s retail brand npower had the second-lowest rate of customer complaints, whereas it received the highest number of complaints in 2015.

Electricity generation down 8 per cent year on year

In the first half of 2017, innogy produced 5.7 billion kWh of electricity, 8 per cent less than in the same period last year. A large portion was attributable to generation from renewables: about 65 per cent from onshore and offshore wind turbines and about 21 per cent from run-of-river and storage power stations. A small proportion was produced by biomass and photovoltaic plants. Some 11 per cent stemmed from conventional electricity generation capacities at companies in which innogy holds a stake.

The great extent to which renewable electricity generation depends on the weather is reflected in the year-on-year decline in electricity production: Wind, precipitation and melt water levels in the first half of 2017 were below average at many wind and hydroelectric power locations of significance to innogy.

Electricity sales volume up 5 per cent, gas delivery volumes down 4 per cent year on year

In the first half of 2017, innogy sold 129.8 billion kWh of electricity to external customers, 5 per cent more than in the same period last year. This was mainly the result of winning new customers in business with German distributors as well as supplying more electricity to existing customers. Conversely, in the United Kingdom and the Netherlands/Belgium, innogy lost residential and small commercial customers to the competition.

Gas sales declined by some 4 per cent to 128.0 billion kWh: This was predominantly due to industrial and corporate customers switching to other providers, particularly in some Eastern European countries, but also in the Netherlands/Belgium and the United Kingdom.

Capital expenditure up 9 per cent

innogy’s capital expenditure in the first half of 2017 rose by 9 per cent year on year to EUR 713 million. This was largely due to the acquisition of the international solar and battery specialist Belectric. The expansion and modernisation of its grid infrastructure continue to be a focal point of the company’s investing activity. Besides maintenance, the focus was on the connection of decentralised generation assets and network expansion in relation to the energy transition. In addition, innogy spent capital on various onshore wind projects in the United Kingdom and Germany. However, capital expenditure on property, plant and equipment in the Renewables division was on a par year on year.

Net debt rises to EUR 17.1 billion

As at 30 June 2017, net debt totalled EUR 17.1 billion, up by about EUR 1.4 billion compared to 31 December 2016. This was primarily due to the dividends paid in the second quarter. Another reason is the negative free cash flow: For seasonal reasons, electricity and gas sales volumes are above average at the beginning of the year, whereas payments received from customers are spread evenly over the year. This effect regularly leads to an increase in working capital and thus to lower cash flows from operating activities in the first half of the year.

Rating agency Moody’s assigns innogy SE stand-alone rating of Baa2

At the end of June, following the assessments by rating agencies Fitch and Standard & Poor’s, Moody’s gave innogy’s creditworthiness a stable investment grade with a rating of Baa2. The rating reflects innogy’s robust risk profile and underscores the company’s high creditworthiness.

Headcount up slightly

As at 30 June 2017, innogy employed 41,944 people (converted to full-time positions), a net increase of 1,308 compared to the end of 2016. The rise primarily stemmed from personnel transfers from the German locations of RWE companies to the innogy Group as part of the reorganisation of the entire RWE Group. These processes have now been largely completed. The acquisition of Belectric also increased the headcount by approximately 550 in the first half of the year.

Outlook for 2017 confirmed

innogy maintains the outlook on this year’s business performance, which was first published on 13 March 2017 and confirmed on 12 May. It anticipates that the innogy Group will achieve about EUR 4.4 billion in adjusted EBITDA and about EUR 2.9 billion in adjusted EBIT. From today’s perspective, adjusted net income is expected to total over EUR 1.2 billion, thus exceeding the figure achieved in 2016 by at least 7 per cent.

In the Renewables division, the commissioning of new capacity will have a positive effect. The negative foreign exchange trend in the United Kingdom and the non-recurrence of positive one-off effects felt last year will have an opposing impact. The division will therefore probably close fiscal 2017 slightly down year on year.

In the Grid & Infrastructure division, the development of the result will mainly be characterised by the positive effect of lower costs incurred to maintain and operate innogy’s grids. Furthermore, provisions were accrued last year for partial retirement measures. An increase in the result is expected as a consequence.

The situation in the UK retail business remains very tense due to the fierce competition and political pressure. Measures to reduce costs within the scope of the restructuring programme will help to partially offset negative market effects. However, the Retail United Kingdom segment is not expected to generate positive adjusted EBIT in 2017. Overall, in the Retail division, innogy intends to counter this with additional efficiency measures and therefore currently maintains its outlook. The forecast does not take account of potential further regulatory intervention in the UK retail business, for example by way of a price cap on standard variable tariffs.

Legal disclaimer

This document contains forward-looking statements. These statements are based on the current views, expectations, assumptions and information of the management, and are based on information currently available to the management. Forward-looking statements shall not be construed as a promise for the materialization of future results and developments and involve known and unknown risks and uncertainties. Actual results, performance or events may differ materially from those described in such statements due to, among other things, changes in the general economic and competitive environment, risks associated with capital markets, currency exchange rate fluctuations, changes in international and national laws and regulations, in particular with respect to tax laws and regulations, affecting the Company, and other factors. Neither the Company nor any of its affiliates assumes any obligations to update any forward-looking statements.

New head office creates opportunities for innovative working environments

Construction in Essen’s inner city scheduled to start in autumn 2018

The new centrally located, state-of-the-art and sustainable head office of innogy SE will take shape close to Essen’s city centre. Work will commence in 2018, with the first building stage scheduled for completion by the end of 2020. The remaining buildings will follow by mid-2024. The project is currently in the development and approval stage.

“The energy industry is one of the most important factors in the economy of Essen,” says the city’s mayor, Thomas Kufen. “I am very happy to see innogy acknowledge its location in this way. The new development of the innogy campus along Huyssenallee will bolster Essen as a business location for the long term. I’m also very pleased about enhancing the site from an urban planning aspect.”

The new campus will be just a few hundred metres from Essen’s central station and will thus offer excellent transport connections. The design places great emphasis on ensuring that employees can continue to get to work quickly and without complications, especially using public transport.

innogy SE will rent the new office space from the developer and lessor, Essen-based real estate company KÖLBL KRUSE. As part of a multiple commissioning process for the new innogy campus, Hamburg-based architects BAID (formerly BN ARCHITEKTEN jessica.borchardt) won out with their draft proposal: the special aspect of the new campus is that it strives to be perceived as contemporary and cutting-edge, while building on the quality of the urban structures that have grown over time. “This is one of the best sites in the entire Ruhr district,” says Dr Marcus Kruse, managing partner of KÖLBL KRUSE GmbH. “We are proud to be able to take on such a significant urban planning task here in our home town,” adds Stephan Kölbl, likewise a managing partner at KÖLBL KRUSE.

innogy and KÖLBL KRUSE jointly selected the architectural plans that will now be refined and adapted to the special requirements of the project (note for editorial teams: images available on our press pages). The investor will obtain the necessary permits on this basis and will take over the further planning process in close consultation with innogy. The overall plan for the campus covers a site of just under 31,000 square metres and a rental area of about 100,000 square metres. innogy SE will be the main tenant.

In the first stage of construction, at the corner of Huyssenallee and Baedekerstrasse, KÖLBL KRUSE will erect a building of about 18,000 square metres. This part of the site was cleared at the end of 2016, so no further demolition work will be required. This section is scheduled to be completed in 2020. As soon as innogy has taken up occupation of the first construction stage, KÖLBL KRUSE will begin demolition work on the rest of the site, also during 2020. The current plan is to tear down the buildings now being used by innogy along Huyssenallee.

innogy has established a new subsidiary, which is to enter the e-mobility market in the USA. The new company, trading under the name of innogy e-mobility US LLC, will be based in Los Angeles and serve the US market as a provider of technology and services. Business activities will focus on California and other US states that have stipulated zero-emission requirements for new vehicles (Zero Emission Vehicle). Cameron Funk is to manage innogy e-mobility US LLC as its first CEO. His previous role was Director of Business Development for ABM Industries Inc.

As one of the founding members of the EVCA (Electric Vehicle Charging Association), Cameron Funk has contributed to the progress of electric mobility in the USA. He is very experienced in developing EV Charging programs for major OEM Auto Makers including an extensive public infrastructure EV Charging background. Funk: “I am excited to be given this opportunity to help shape innogy’s entry into the e-mobility market in the USA as a representative of one of the top players in Europe. We have the right products and an excellent, highly motivated team, which will enable us to build a successful future in the USA.”

innogy e-mobility US LLC operates as a technology and service provider in the field of e-mobility. The new company is a wholly owned subsidiary of innogy SE. The company’s portfolio spans the whole length of the value chain, from the production, marketing, supply and construction of charging solutions right up to the operation of charging infrastructure based on its in-house software. innogy also markets a range of additional services in connection with e-vehicle electricity.

Over the course of other collaborations, innogy has already set foot in the US market for e-mobility. Now, with BTCpower, innogy has gained a hardware partner for high-speed charging systems, which have been upgraded with an increased range of functions thanks to the innovative IT system from Germany.

]]>Vertrieb,CompanyThu, 06 Jul 2017 13:01:41 +0200Moody’s assigns a stand-alone Baa2 rating to innogy SEhttp://news.innogy.com/moodys-assigns-a-stand-alone-baa2-rating-to-innogy-se/
http://news.innogy.com/moodys-assigns-a-stand-alone-baa2-rating-to-innogy-se/Following innogy´s successful IPO in late 2016 Moody’s Investors Service (Moody’s) has today assigned issuer ratings of Baa2 (outlook stable) to innogy SE and innogy Finance B.V. (guaranteed by innogy SE). At the same time it upgraded to Baa2 from Baa3 the ratings of senior unsecured debt.

The rating reflects the low business risk of innogy with its three segments renewables, grid & infrastructure and retail. The improved credit quality of parent company RWE is also seen as supportive.

Bernhard Günther, Chief Financial Officer of innogy SE: “The rating by Moody´s underlines the solid investment quality of innogy. It will foster our role as an important issuer in the Debt Capital Market.”

Besides the Moody’s rating, innogy also has investment grade ratings from Fitch and Standard & Poor’s.

innogy SE posted an increase in earnings for the first quarter of 2017, as expected. Adjusted EBITDA was EUR 1,617 million, up 4 per cent year on year. Net of operating depreciation and amortisation, the company posted adjusted EBIT of EUR 1,261 million, an increase of 6 per cent compared to the same period last year. Adjusted net income was EUR 684 million. Because the envisaged capital structure for innogy had not yet been established in the comparable period for the previous year, and the legal reorganisation of the innogy Group had not yet been completed, no adjusted net income has been presented for the first quarter of 2016. As at 31 March 2017, innogy employed 41,854 people (converted to full-time positions). They generated external revenue of EUR 12.4 billion, which was down 7 per cent year on year.

Bernhard Günther, Chief Financial Officer of innogy SE: “Business performance in the first quarter of 2017 is in line with our expectations. We confirm the positive outlook that we provided in March, at both a Group and a divisional level.”

Adjusted EBIT up 6 per cent, mainly due to lower expenditure in the Grid & Infrastructure Germany segment

The grid business was the main driver of the earnings growth achieved in the first quarter 2017. Adjusted EBIT for the Grid & Infrastructure division increased by 29 per cent, to EUR 708 million. This was influenced mainly by lower expenses for operating and maintaining its networks in Germany. In addition, in the first quarter of 2016, provisions had been accrued in this segment for partial retirement measures. Cooler weather conditions in Eastern Europe compared to the previous year had a positive impact on earnings as well. They drove up volume on the gas distribution networks, especially in the Czech Republic.

Adjusted EBIT for the Renewables division declined by 13 per cent year on year, to EUR 134 million. Weather conditions led to reduced electricity generation and therefore lower earnings. In particular, the lower wind levels at the major generation sites and reduced precipitation levels compared to the previous year reduced plant utilisation.

Adjusted EBIT in the Retail division was down 9 per cent year on year, at EUR 490 million: whereas the retail business showed a stable trend in Germany and Eastern Europe, a drop in customer numbers and sales in the Netherlands/Belgium segment compared to the same quarter last year was noticeable. A counteracting effect was felt above all from the decline in earnings in the UK retail business against the backdrop of an increasingly tough market environment. The recovery plan for the UK retail business, launched in early 2016, continues to make progress as scheduled.

To date, npower has implemented concrete measures that already cover more than half of the 200 million British pounds in cost savings on an annual cost base, envisaged up to the end of 2018. The efficiency improvements that have been achieved, however, are far from sufficient to make up for the continued deterioration in market conditions and reduced margins. Therefore, further efficiency improving measures at npower are being examined.

Capital expenditure up 13 per cent

innogy’s capital expenditure in the first quarter of 2017 rose by 13 per cent to EUR 323 million year on year. This was largely due to the acquisition of the international solar and battery specialist Belectric. The expansion and modernisation of its grid infrastructure continue to be a focal point of the company’s investing activity. Besides maintenance, the focus was on the connection of decentralised generation assets and network expansion in relation to the energy transition.

Increase in net debt to EUR 16.6 billion

As at 31 March 2017, innogy’s net debt totalled EUR 16.6 billion, up from EUR 15.7 billion as at 31 December 2016. The rise in net debt was primarily due to the seasonally-induced, regularly negative cash flows from operating activities in the first quarter: whereas electricity and gas sales volumes at the beginning of the year are above average on account of the weather conditions, customer payments are spread evenly throughout the year.

innogy confirms the outlook on business performance for the current fiscal year that was first published on 13 March 2017. It anticipates that the Group will achieve about EUR 4.4 billion in adjusted EBITDA and about EUR 2.9 billion in adjusted EBIT. Adjusted net income is expected to total over EUR 1.2 billion, thus exceeding the figure achieved in 2016 by at least 7 per cent. The anticipated positive effects in the financial result reinforce this expectation.

Bernhard Günther: “Looking at fiscal 2017, the targeted increase in adjusted net income of at least 7 per cent will certainly be of particular significance to our shareholders, since our dividend is based on adjusted net income, of which we intend to continue paying out 70 per cent to 80 per cent in dividends.”

However, the prospects in the Retail United Kingdom segment have clouded considerably. The worsening of the market environment against the backdrop of persistent, extremely fierce competition will have an impact on earnings for the full year. Therefore, the Retail United Kingdom segment is no longer expected to generate positive adjusted EBIT in 2017. Overall, in the Retail division, innogy intends to counter this with additional efficiency measures and therefore currently maintains its outlook for the entire division. The forecast does not take account of potential further regulatory intervention in the UK retail business, for example by way of a price cap on standard tariffs.

Legal disclaimer

This document contains forward-looking statements. These statements are based on the current views, expectations, assumptions and information of the management, and are based on information currently available to the management. Forward-looking statements shall not be construed as a promise for the materialization of future results and developments and involve known and unknown risks and uncertainties. Actual results, performance or events may differ materially from those described in such statements due to, among other things, changes in the general economic and competitive environment, risks associated with capital markets, currency exchange rate fluctuations, changes in international and national laws and regulations, in particular with respect to tax laws and regulations, affecting the Company, and other factors. Neither the Company nor any of its affiliates assumes any obligations to update any forward-looking statements.

Elke Temme and Stefan von Dobschütz will jointly head division in future

The dual leadership is in place: BMW manager Stefan von Dobschütz, most recently General Manager for BMW i, BMW’s eMobility sub-brand, joins the eMobility business unit of innogy, ’s leading energy company, on 8 May. He will team up with Elke Temme, who built up the division and has headed it since its foundation at the beginning of this year. The structure decided upon last autumn by innogy’s Executive Board has now been implemented, and electric mobility activities at innogy will be expanded as planned.

innogy already operates a network of more than 4,300 charging points in Germany, with more than 5,700 internationally.

Temme is also looking forward to working closely with her new colleague: “Not only have we undertaken a vast amount in the area of eMobility, but the business unit also includes highly varied and complex areas of activity – from technical development to retail and operational implementation. That’s why I am very happy to have Stefan von Dobschütz alongside me in this dual leadership role: he brings with him so much experience in the automobile manufacturing industry, which is so important to us at innogy.” In their dual leadership role, Temme will be responsible for product management, operations, product development and communications, while von Dobschütz will take charge of national and international retail, including business development and contract administration.

Stefan von Dobschütz is a qualified physicist, and began his professional career with the Boston Consulting Group. From there he moved to the BMW Group, where he assumed a range of management positions.

Supervisory Board of innogy constituted and Dr Werner Brandt elected as Chairman

Frank Bsirske Deputy Chairman of the Supervisory Board

At the Annual General Meeting of innogy SE held today, the following individuals were elected under item 9 of the agenda “New Supervisory Board elections” to the Supervisory Board of innogy SE as shareholder representatives by way of individual elections (election results shown in brackets as a percentage of votes submitted in each case):

Robert Leyland, Member of the European Works Council of RWE Aktiengesellschaft,Member of the SE Works Council of innogy SE

Meike Neuhaus, Head of PR, Sponsoring and Event Management of innogy SE

René Pöhls, Chairman of the Group Works Council of envia Mitteldeutsche Energie AG,Chairman of the Joint Works Council of envia Mitteldeutsche Energie AG,MITGAS Mitteldeutsche Gasversorgung GmbH,Mitteldeutsche Netzgesellschaft Strom mbH and Mitteldeutsche Netzgesellschaft Gas mbH

Pascal van Rijsewijk, Chairman of the Main Works Council of Essent N.V.,Chairman of the Consumer Retail Works Council of Essent N.V.,Member of the European Works Council of RWE Aktiengesellschaft,Member of the SE Works Council of innogy SE

Gabriele Sassenberg, Chairwoman of the Essen Works Council of innogy SE, Division Renewables

Šárka Vojíková, President of the Czech Federation of Trade Unions SOS Energie,Member of the Committee of the European Works Council of RWE Aktiengesellschaft,Member of the SE Works Council of innogy SE

After the Annual General Meeting, the Supervisory Board of innogy SE was constituted. From within its own ranks, Dr Werner Brandt was re-elected Chairman of the Supervisory Board. Frank Bsirske remains Deputy Chairman of the Supervisory Board.Dr Rolf Pohlig was re-elected Chairman of the Audit Committee.

The tenure of the elected members shall end on conclusion of the Annual General Meeting that passes a resolution on the approval of the acts of the Supervisory Board for the fourth fiscal year after the beginning of their tenure. The fiscal year in which their tenure begins shall not be counted, and their

tenure shall be limited to six years.

At the Annual General Meeting of innogy SE 517,213,045 common shares were represented. This corresponds to a presence of 93.10%.

Energy company takes advantage of favourable market conditions for refinancing

Today, almost exactly six months after its debut on the stock exchange, innogy SE successfully issued its first senior bond. With a volume of € 750 million and an eight year maturity the bond was placed via innogy Finance B.V and guaranteed by innogy SE. Based on a coupon of 1.00 % p.a. and an issue price of 99.466 % the yield-to-maturity amounts to 1.07 % p.a. The transaction was met with high market interest and was several times oversubscribed.

Bernhard Günther, Chief Financial Officer of innogy SE, was pleased with the issuance:

The proceeds from the issuance will be used to refinance maturing liabilities and finance general corporate purposes. Bookrunners for the issuance were Commerzbank, J.P. Morgan, Lloyds, Morgan Stanley, SMBC Nikko and UniCredit.

The future belongs to renewables such as wind and solar energy – but only if the systems operate smoothly. For example, this is often not the case with photovoltaic systems that private individuals and corporate customers operate on their roofs. Studies and surveys conducted among photovoltaic experts show that more than 80 percent of photovoltaic systems installed in Germany have defects. This means that these systems do not deliver the yields that owners and operators expect from them. Losses of tens of thousands of euros over the total service life can occur.

The start-up ucair, the latest spin-off of innogy’s Innovation Hub, is solving this problem with an innovative idea: instead of sending technicians up to the roofs to check the photovoltaic systems, ucair carries out the check with a drone. It is faster and significantly cheaper. ucair founder Christian Shuster, who was recently selected as one of the “100 most innovative minds in Germany” by the German financial journal “Handelsblatt”:

The pilots then forward the thermographic data to ucair for analysis. Damage to cells and modules as well as total malfunctions of individual components become visible thanks to differences in temperature during the partially automated analysis conducted by experts. “On the basis of this analysis, the customer receives a detailed report as well as recommendations from us regarding the repairs that are required to achieve maximum yield,” explains ucair co-founder Marian Krüger. Since the project started in August 2016, ucair has inspected solar energy systems with a capacity of 25 megawatts and therefore shown private and corporate customers how they can increase their yield by more than 90,000 euros a year. Other customer systems with a capacity of almost 30 megawatts will be flown in the next few weeks.

Thomas Birr, Senior Vice President & Business Transformation, who is responsible for the area of innovation, the innogy Innovation Hub, at Germany’s leading energy company:

Similar to major providers of other industries such as uber or airbnb, ucair relies on the platform model and mediates the inspection process without owning a single drone itself. However, ucair has its own data analysis system and therefore sets itself apart from pure marketplace solutions that only liaise with service providers. Following the successful development phase, ucair is now embarking on its first business year as an independent company with a seed investment in the amount of one million euros from innogy.

The video interview with ucair CEO Christian Shuster can be found here.

Replacement of diesel and petrol engines to take place within four years

The future of driving is electric – Germany's leading energy utility innogy is convinced of this and is acting accordingly: Within four years, the company's entire service fleet will be converted to electric and hybrid cars. When placing new orders, the only options now available to company directors, executives and frequent drivers are climate-friendly models – vehicles with conventional diesel or petrol engines are no longer available. The innogy Executive Board in Essen has adopted a corresponding resolution.

innogy is already one of the leading suppliers of charging infrastructure for electric vehicles, with more than 4,000 charging points in Germany and over 5,400 across Europe. Peter Terium: "There are many suppliers that are repositioning themselves to prepare for the global eMobility market of the future. But nobody is implementing this strategy as effectively as innogy."

innogy SE’s service car fleet currently comprises approximately 1,000 vehicles in total. Up to the end of the year, the choice to move away from an internal combustion engine is voluntary. From 1 January 2018, however, the changeover to an electric or hybrid model is mandatory. In order to avoid possible additional costs for employees caused by the conversion, the Executive Board has implemented an additional budget, which compensates for the somewhat higher costs for eCars. This budget will be in effect for two years, after which time it will be recalculated in anticipation of declining costs for electric and hybrid vehicles.

innogy has already supported ‘charging at home’: Employees who opt for an electric vehicle as a service car are provided with the charging infrastructure, such as the charging box, and innogy is covering the electricity costs, too. Financially supporting electric cars is but one of many steps being taken at innogy to promote climate friendly electric mobility.

In its first fiscal year as an independent company, innogy SE achieved all its financial targets: adjusted EBITDA (previously EBITDA) totalled EUR 4.2 billion, which was within the forecast range of EUR 4.1 to 4.4 billion. Adjusted net income of EUR 1.1 billion was perfectly in line with the forecast. On this basis, the Executive Board and the Supervisory Board will propose to the Annual General Meeting in April that a dividend of EUR 1.60 be paid per share for 2016. This equates to a dividend yield of approximately 5 per cent based on the year-end closing price for 2016.

Peter Terium, Chief Executive Officer of innogy SE, looks back on the last fiscal year with satisfaction:

Terium continues: “We achieved all this while many of our resources were focused on the fastest and largest IPO that Germany has seen in recent years. That fills me with pride. I would like to thank our more than 40,000 employees for the part they played.”

As Germany’s largest energy company in terms of market capitalisation, innogy earned external revenue of around EUR 43.6 billion in fiscal 2016, which was down 4 per cent year on year. At EUR 4.2 billion, adjusted EBITDA was within the forecast range; this figure represents a decline of 7 per cent compared to 2015. Net of operating depreciation and amortisation, innogy posted adjusted EBIT (previously the operating result) of EUR 2.7 billion, thus closing 10 per cent down on the previous year. Additional costs incurred to maintain and upgrade network infrastructure were the main reason for this. In addition, wind levels were much lower year on year, which had a negative effect on the utilisation of innogy’s wind farms.

Positive outlook for 2017: adjusted net income of over EUR 1.2 billion

innogy expects a positive earnings trend for the current fiscal year, and forecasts adjusted EBITDA of about EUR 4.4 billion and adjusted EBIT of around EUR 2.9 billion for 2017.Lower costs in the Grid & Infrastructure Germany segment are a major reason for this. Adjusted net income is anticipated to total over EUR 1.2 billion, exceeding by at least 7 per cent the figure achieved in fiscal 2016. This item will additionally benefit from lower expenses recognised in the financial result. The Renewables division will probably close fiscal 2017 on a par with last year’s level, while Grid & Infrastructure is expected to close the current year clearly up on 2016. The Retail division will probably also close fiscal 2017 on a par with last year.

innogy confirms its intention to pay 70 to 80 per cent of adjusted net income as a dividend. The Executive Board and the Supervisory Board of innogy SE plan to decide in early 2018 on the exact amount of the dividend payment for fiscal 2017 which will be proposed to the Annual General Meeting in April 2018.

Business performance during 2016 in detail

The performance of both adjusted EBITDA and adjusted EBIT is essentially driven by the following factors:

The Renewables division experienced an earnings-reducing effect, caused above all by low wind levels. Compared to the previous year, at innogy’s major generation sites in Germany, the United Kingdom, the Netherlands, Spain and Poland it recorded declines, some of which were significant, especially during the second half of the year. Moreover, earnings achieved in the same period last year included extraordinary income from the sale of shares in the Galloper offshore wind project and the disposal of the network infrastructure of the Gwynt y Môr offshore wind farm. Adjusted EBITDA for this division declined by 18 per cent to EUR 671 million, similar to adjusted EBIT, which dropped by 26 per cent to EUR 359 million.

The Grid & Infrastructure division saw its adjusted EBITDA decline by 9 per cent to EUR 2,622 million compared to 2015, with adjusted EBIT dropping by 12 per cent to EUR 1,708 million. The decline in earnings in this division was mainly due to additional costs incurred to maintain and upgrade its network infrastructure in Germany. In the Grid & Infrastructure Eastern Europe segment, the result for the previous year also included exceptional income due to the first full consolidation of Slovak energy utility VSE.

Earnings in the Retail division developed positively. Adjusted EBITDA increased by 7 per cent to EUR 1,057 million, and adjusted EBIT rose by 2 per cent to EUR 844 million. This positive development is all the more pleasing given that the previous year’s earnings contained exceptional income from the revaluation of VSE. The UK retail unit made the largest contribution to the growth, although it recorded another loss based on adjusted EBITDA and adjusted EBIT. The effects of the restructuring programme initiated at the start of 2016 began to be felt: despite a difficult market environment, it succeeded in further reducing costs, the number of customer complaints was down, and the customer base remained relatively stable.

Dividend proposal of EUR 1.60 per share for fiscal 2016

The Executive Board and the Supervisory Board of innogy SE will propose a dividend of EUR 1.60 per dividend-bearing share for fiscal 2016 to the Annual General Meeting on 24 April 2017. This corresponds to a pay-out ratio of about 80 per cent of adjusted net income, and is therefore at the upper end of the target range of 70 to 80 per cent set by innogy for the dividend payment.

Electricity generation in 2016 slightly lower than in previous year

In the fiscal year that just ended, innogy produced 10.8 billion kWh of electricity, 3 per cent less than in 2015. A large portion of this was attributable to generation from renewables: 65 per cent from onshore and offshore wind farms, 26 per cent from run-of-river power stations, and 2 per cent from biomass and photovoltaic plants. Approximately 7 per cent stemmed from conventional electricity generation capacity, which innogy states via its fully consolidated investments. Electricity production was curtailed compared to 2015, mainly on account of substantially lower wind volumes and the reduced utilisation of innogy’s wind power assets as a consequence.

Differing trends in gas and electricity sales

Gas sales dropped by some 2 per cent to 241.3 billion kWh compared to 2015. This was due to declines in sales to distributors that increased their purchases from other energy suppliers or began buying all their electricity from them. Conversely, during the year under review, innogy sold 242.5 billion kWh of electricity to external customers, 4 per cent more than in 2015. Sales grew in the distributor segment, since innogy won new customers and intensified its supply relationships with existing ones.

Capital expenditure slightly lower year on year

At EUR 2.1 billion, innogy’s capital spending during fiscal 2016 was 3 per cent down on 2015. It spent EUR 1.8 billion on property, plant and equipment and intangible assets, 9 per cent less than in 2015. Capital spending decreased primarily in the Renewables division, dropping by 40 per cent. The completion of two large-scale projects in 2015, the offshore wind farms Nordsee Ost and Gwynt y Môr, was the main reason for this. Capital expenditure in the Grid & Infrastructure division was also slightly down, but as before, nearly two-thirds of the total capital spent on property, plant and equipment and intangible assets went to this division. Besides maintenance, the focus was on the connection of decentralised generation assets and network expansion associated with the energy transition.

Free cash flow 15 per cent up on previous year

Cash flows generated from operating activities decreased by 3 per cent to around EUR 2.7 billion compared to the same period last year. This was predominantly due to the change in working capital. Working capital is subject to significant fluctuation, especially in the Grid & Infrastructure and Retail divisions. Free cash flow increased by 15 per cent compared to the previous year, to EUR 841 million. Deducting capital expenditure on property, plant and equipment and intangible assets from cash flows from operating activities results in free cash flow.

Leverage factor 3.7 at end of 2016, below envisaged ratio of about 4.0

As at 31 December 2016, innogy’s net debt totalled EUR 15.7 billion, up EUR 9.1 billion compared to the 2015 balance-sheet date. However, the net debt shown in the 2015 balance sheet is of only limited value for comparison. The capital structure envisaged for the innogy Group was established only in the course of fiscal 2016: among other things, innogy assumed financial responsibility for capital market liabilities of the RWE Group as consideration for the assets transferred from RWE to innogy during the reorganisation process. After the IPO, this financial assumption of liabilities was also initiated at an external level through a guarantor and creditor change for RWE AG senior bonds outstanding to innogy and was successfully completed in February 2017. With a total volume of EUR 11 billion, this transaction was the largest of its type by a corporate in Europe to date. Furthermore, changes in market interest rates made it necessary to increase provisions for pensions compared to the end of 2015. The EUR 2.0 billion capital increase within the scope of innogy’s IPO as well as the positive free cash flow contributed to limiting the rise in debt.

innogy manages its indebtedness via the leverage factor, which is the ratio of net debt to adjusted EBITDA. This performance indicator is more useful than the absolute level of liabilities, as it considers the company’s earnings power and, in turn, its capacity to service debt. innogy is striving for a leverage factor of around 4.0. As at 31 December 2016, it was 3.7.

40,636 people working for innogy at end of 2016

As at 31 December 2016, innogy had 40,636 people on its payroll throughout the Group. Part-time positions were considered in these figures on a pro-rata basis. Last year, net personnel figures grew by 476 employees. At the company’s German sites, the headcount rose by 619 from the end of the previous year to 20,553, whereas its workforce abroad shrank by 143 to 20,083 staff members.

Legal disclaimer

This document contains forward-looking statements. These statements are based on the current views, expectations, assumptions and information of the management, and are based on information currently available to the management. Forward-looking statements shall not be construed as a promise for the materialization of future results and developments and involve known and unknown risks and uncertainties. Actual results, performance or events may differ materially from those described in such statements due to, among other things, changes in the general economic and competitive environment, risks associated with capital markets, currency exchange rate fluctuations, changes in international and national laws and regulations, in particular with respect to tax laws and regulations, affecting the Company, and other factors. Neither the Company nor any of its affiliates assumes any obligations to update any forward-looking statements.

Following its successful IPO in October 2016, innogy SE has published its first Sustainability Report in accordance with the Global Reporting Initiative (GRI) international guidelines, for the year 2016. In the report, the company has shown its commitment to social responsibility in and beyond its business activities. Customers form the central focal point for innogy. Consideration of environmental and sustainability criteria are also high on the corporate agenda. This is because economic success and social responsibility go hand in hand. Sustainability criteria are therefore also reflected in the remuneration of innogy’s board members. As well as to its customers, innogy wants to provide transparent information about its business practices, its commitment to society and its focus on sustainability not only to its customers, but also to other stakeholders such as employees, investors, local residents, politicians, the media and society.

Peter Terium, CEO of innogy SE, explains:

The Sustainability Report contains a wealth of facts and figures that back up innogy’s claims. For example, the company’s power generation was almost carbon-free in 2016. innogy invested a total of over €965 million in climate and environmental protection activities in 2016. The health rate of the work force in the reporting year was close to 96 percent. Work-life balance has been eased with mobile and flexible working arrangements. These are only selected examples addressing the most important areas of sustainability activities.

innogy sees itself as an important and integral part of society. This is why the company provided financial support for voluntary social, environmental and cultural engagements undertaken by employees in 2016. As part of the company’s assistance for refugees, 70 people were offered a traineeship or work-a placement role.

The many sustainability initiatives undertaken by the Renewables, Grid & Infrastructure and Retail divisions are explained in the Sustainability Report. innogy’s strategy is consistently aligned with the megatrends of decarbonisation, decentralisation and digitalisation, which also provides sustainable benefit for its stakeholders. For example, around 8,500 renewable energy installations owned by third parties were newly connected to the distribution systems of the innogy Group in Germany in the reporting year, increasing their total number to approximately 325,000 installations. With innogy’s products and services, customers are supported in using energy more efficiently and contributing to the transformation of the energy industry.

In its Sustainability Report, innogy explains in detail that the innogy Group is responding to the changing environmental awareness within society. This is because a sustainable, renewable energy supply is an essential requirement in the successful transformation of the German energy industry.

On 7 October 2016, innogy SE celebrated its debut on the Frankfurt trading floor. Soon thereafter, the guarantor and creditor change for all RWE AG senior bonds outstanding to innogy SE was initiated and successfully completed in February 2017. With a total volume of €11 billion equivalent, this transaction, which encompassed 18 bonds of various currencies, is the largest of its type by corporate in Europe.

The transfer was largely effected on the basis of the German Bond Act. This resulted in the act being applied to a large sized transaction outside of a restructuring situation for the first time. As a result of the successful implementation the corresponding financing between RWE and innogy has been eliminated. innogy is thus establishing itself as an autonomous player also on the bond market, emphasising the two companies' financial independence.

innogy and OurCrowd will identify promising startups in Israel beyond the energy domain

innogy SE, a leading European energy company, and OurCrowd, a leading global equity crowdfunding platform, today announced a new business partnership. The partnership will combine the strength of OurCrowd’s network and ability to scout investment opportunities in Israeli startups and match the business objectives of innogy to provide innovative products and services beyond the energy market.

Peter Terium, CEO of innogy SE said in Jerusalem:

OurCrowd, a platform that connects investors and startups around the world, will help funnel Israeli technology startups that support innogy. This partnership will help innogy achieve its goal of enabling people to improve their quality of life by changing and enhancing the energy sector worldwide (and in Europe and Germany in particular) through decarbonisation, decentralisation and digitalisation.

Jon Medved, Founder and CEO of OurCrowd said: “We’ve been impressed by innogy’s growing presence in Israel and thrilled to enter into this new strategic partnership. This partnership will give our portfolio companies a quality gateway to the European markets, with one of the most innovative and well positioned new breed of utilities. The innogy mission is to inspire people, offering solutions and making lives easier – something that we at OurCrowd believe in passionately.”

innogy's Innovation Hub established an outpost in Israel to engage with innovative startups in its areas of interest (Smart & Connected, Urban Solutions, Disruptive Digital, Big Data and Machine Economy/Blockchain), aiming to collaborate and invest in accordance with its open innovation strategy. The innogy Israel outpost is managed by Mickey Steiner, who has a wealth of experience in the Israeli hi-tech industry and is based in Tel Aviv.

Spearheaded by innogy, eight energy utilities are launching the 'Free Electrons' programme, the first global start-up accelerator in the energy sector. Promising start-ups are invited to collaborate with the leading global energy companies. The objective of the programme is to develop innovative business models for the 73 million customers of the partner companies in more than 40 countries. Peter Terium, CEO of innogy SE, launched the international initiative in Dubai:

In order to make the future energy supply smart, clean and accessible to everyone worldwide, new and different approaches are necessary. With this programme innogy therefore combines the expertise of large energy utilities with new technologies and innovative ideas developed by selected start-ups. Peter Terium: "With our innovations we want to be at the forefront of shaping the energy world of tomorrow. In order to achieve this we need partners. And we must be represented and active at the places where these revolutionary ideas are born. Obviously in Silicon Valley, but also in the other start-up centres of the world, such as Tel Aviv, London or Berlin – and, of course, here in Dubai, a city that embodies innovation and progress in a very impressive way."

'Free Electrons' brings together the most innovative energy start-ups in the sectors of renewables, energy efficiency, e-mobility and digitisation with the global network of energy utilities and accelerators. During the six-month programme the start-ups can test their products and services in a realistic environment. The highlight of the initiative are three one-week modules in Silicon Valley, Lisbon, Dublin and Singapore. During this time the winning start-ups are given the unique opportunity to network with the international energy utilities behind the programme: AusNet Services, Dubai Electricity and Water Authority (DEWA), ESB (Electricity Supply Board), EDP (Energias de Portugal), Origin Energy, Singapore Power (SP), Tokyo Electric Power Company (TEPCO) and innogy.

In order to make the most of the start-ups' potential, the two accelerator partners New Energy Nexus and Swissnex San Francisco are supporting the programme. Energy start-ups from all over the world are eligible to apply if they have developed a working prototype of their innovation. A total of twelve start-ups will be supported by the energy utilities and take part in the nine-month programme. Deadline for applications is 28 February. Interested start-ups can apply at www.freelectrons.co.

Germany needs a faster internet, and innogy and Deutsche Telekom have been tackling this task together. Broadband access to the worldwide web has come to be one of the decisive factors involved in a company’s choice of location. Without the appropriate internet infrastructure and high-speed data transmission, German companies are at a disadvantage compared to global competitors. Germany still lags far behind in terms of broadband rollout. The German federal government has set a target of broadband with bandwidths of at least 50 megabits per second to be available to all households by 2018. innogy and Deutsche Telekom have signed a cooperation agreement in order to stimulate the necessary expansion of the broadband network in time. The term of the agreement is to last at least ten years.

“We are really looking forward to long-term cooperation with Deutsche Telekom,” said Hildegard Müller, COO of Grid & Infrastructure at innogy, at a joint press conference held today in Berlin. “The expansion of the high-speed internet is a national priority. As innogy we will work together with Deutsche Telekom to be instrumental in helping Germany achieve this objective as quickly as possible,” she added.

“Deutsche Telekom wants to work with partners to drive broadband expansion in Germany”, explained Niek Jan van Damme, Member of the Board of Management Deutsche Telekom AG for Germany. “The agreement with innogy will cover 60 local networks in the Eifel, Hunsrück and Münsterland regions. The partnership is a win-win-win situation for our customers and both companies,” van Damme added at the conference in Berlin.

Both companies agree that the cooperation is going to make a significant contribution to the rapid expansion of the network. innogy and Deutsche Telekom estimate an overall market potential of up to one million people who will be able to benefit from broadband internet access over the next few years as a result of this collaboration. Regarding the necessary expansion of the networks, innogy is already well prepared, innogy Board member Müller explains. “With a network of 356,000 kilometres, we are the largest distribution grid operator in Germany and we are continuing to invest in infrastructure and modernisation of the grids. As the partner of local communities, we can bring high-speed internet to the rural regions of the country as well.” Thanks to innogy’s successful debut on the stock market in October 2016, the resources for investments have been secured. Overall, innogy plans to make investments amounting to around 6.5 billion euro in the 2016-2018 period, around two-thirds of which, i.e. a good4 billion euro, will be earmarked for the area of Grid & Infrastructure.

innogy and Deutsche Telekom have agreed to work together closely on network expansion and marketing. However, customers will still be free to choose their preferred provider – innogy will continue to make its own broadband networks available to other providers through open access technology. innogy will also continue to offer its own service with “innogy Highspeed”. For the provision of preliminary work, innogy is using the leading market place of the company vitroconnect for broadband connections.

]]>CompanyMon, 23 Jan 2017 13:55:52 +0100innogy acquires BELECTRIC Solar & Battery http://news.innogy.com/innogy-acquires-belectric-solar--battery/
http://news.innogy.com/innogy-acquires-belectric-solar--battery/Transaction successfully completed – innogy becomes new global player on market for utility-scale photovoltaic power plants and battery storage solutions innogy SE and the Belectric Group have successfully completed the process of the acquisition of the international photovoltaic power and battery storage specialists BELECTRIC Solar & Battery GmbH by innogy. The two companies signed the relevant share purchase agreement at the end of August. The purchase price was in a high double-digit million euro range.

The acquisition of BELECTRIC Solar & Battery (BELECTRIC) takes innogy right to the forefront as a global player on the market for utility-scale photovoltaic power plants and battery storage systems. With this technology on board, innogy will be able to make a significant contribution towards the development of the decentralised, renewable energy system of the future.

Peter Terium, Chief Executive Officer of innogy SE commented: “The acquisition of BELECTRIC Solar & Battery is a perfect fit with innogy’s strategic orientation. innogy is a pioneer and trailblazer for efficient, climate-friendly and intelligent energy solutions. However, we were still lagging behind in the field of utility-scale photovoltaic power plants. We’ve now closed this gap. With our new subsidiary BELECTRIC innogy is now in an ideal position to successfully implement large-scale photovoltaic projects in Europe and our growth regions. Moreover, the combination of expertise in renewable energy and battery storage technology solutions will help us keep our energy system stable, despite the increasing influx of fluctuating renewables. This is another one of our key missions that we have committed ourselves to whole-heartedly at innogy.”

The experts at BELECTRIC, led by founder Bernhard Beck, bring strengths to the new partnership that complement innogy’s specialised know-how in project development, project and asset management in the field of renewables. BELECTRIC will be working together with innogy to design, install and operate utility-scale photovoltaic power plants. At the same time, BELECTRIC will continue to provide services in the fields of EPC (Engineering, Procurement, Construction) and O&M (Operation and Maintenance) for third parties. The company will also remain active in regions that are not among innogy’s target markets for project development.

BELECTRIC is also active in the field of battery storage systems and develops a wide range of solutions including turn-key large-scale battery storage. Tech products are developed and manufactured at the company’s own plants in Germany and India. With over 15 years of experience, BELECTRIC has built more than 280 utility-scale photovoltaic plants and roof-top systems around the world with a total installed capacity of more than 1.5 gigawatts peak (GWp). In addition, BELECTRIC is responsible for the operation and maintenance of solar plants with a total output capacity of more than 1.0 GWp. The regional focus of this business area is on Europe, the growth markets of the MENA region (Middle East North Africa) as well as India, South America and USA. In 2015, the adjusted EBITDA of BELECTRIC Solar & Battery was in a low double-digit million euro range.

Germany’s largest energy company is driving forward the international expansion of electric mobility. The aim is to become a leading solution provider for charging infrastructure in Europe and the US. As a technology leader, innogy already operates one of the largest charging networks in Europe and develops innovative solutions for the future of driving. Peter Terium, CEO of innogy SE:

As a pan-European pioneer of electric mobility, innogy expressly welcomes the new eMobility initiative of the German automotive industry. Peter Terium: “The initiative of the carmakers to set up a fast-charging network across Europe is an excellent idea. And we are ready to provide our state-of-the-art solutions and systems. In this way, we can drive forward electric mobility in Germany and throughout Europe. We have been in close contact with the automotive industry and other partners for a long time now in this regard”.

Experts working in many areas of innogy are already developing innovative solutions for charging points, payment systems and network infrastructure, for example a full-coverage network of fast charging points, tailored products for companies and brand new retail products such as eCar sharing. In the future, these activities will be pooled in their own new business unit under the responsibility of COO Retail Martin Herrmann. Herrmann said:

innogy is already an important partner to large providers on the European market. Martin Herrmann: “We are going with renewables and offer green electricity to our customers at the charging points too. We provide these charging points throughout Germany in collaboration with partners such as Aldi, Daimler, Tank & Rast as well as over 130 local authorities. With around 5,300 charging points in over 20 countries we already operate one of the largest charging networks in Europe”.

The new business unit eMobility will launch on 1 January 2017 and will be headed up by Elke Temme. Temme has held a number of management positions at RWE and now innogy since 2002. Most recently, she was Head of Programme Management Retail, responsible for international operations management and reporting to COO Martin Herrmann. In this position, she was a key player in realigning the eMobility business.

]]>Unternehmen,PressWed, 14 Dec 2016 14:47:15 +0100BMWi gives innogy SE green light: Energy transition project "Designetz" begins on 1 January http://news.innogy.com/bmwi-gives-innogy-se-green-light-energy-transition-project-designetz-begins-on-1-january/
http://news.innogy.com/bmwi-gives-innogy-se-green-light-energy-transition-project-designetz-begins-on-1-january/46 partners working on blueprint for energy transition in three federal statesNow it is official: the German energy transition project "Designetz" will begin on 1 January 2017. The ambitious objective of the 46 project partners under the consortium leadership of innogy is to develop the "blueprint" for energy transition. The Federal Ministry of Economics and Energy (BMWi) is contributing approximately EUR 30 million in funding. The grant application was approved today by the BMWi. In total, the project volume amounts to approximately EUR 66 million.

Designetz "connects" 46 partners and three federal states

"Designetz" addresses vital prerequisites for the operation of the energy transition: the intelligent connection of many decentralised energy producers and consumers from rural to urban areas and highly industrialised metropolitan regions. The objective is to integrate the variable supply from renewables in the overall system using smart grids, innovative storage and so-called interruptible loads, without losing sight of security of supply and economic efficiency. Consequently, companies from industry and municipal utilities as well as institutions from the domains of science and research are represented in the consortium. In addition, "Designetz" will be implemented in three federal states at the same time, namely in North Rhine-Westphalia, Rhineland-Palatinate and Saarland. They not only offer diverse conditions and structures of regions with substantial surpluses of renewable energy production and identified load centres. With more than 22 million inhabitants, more than a quarter of Germany’s population lives here.

Successful German energy transition at forefront as driving force for global climate protection

Peter Terium, Chief Executive Officer of innogy, had the following to say regarding the positive decision on funding: "We are ready! Together with our partners, we wish to develop the blueprint for the success of the energy transition. With "Designetz" we want to demonstrate the characteristics of energy transition – smart, innovative, secure, close to the people and cost-effective. We want to create an example for successful energy transition in Germany and beyond, in line with international climate protection."

Project can draw on exceedingly broad expertise

Hildegard Müller, COO Grid & Infrastructure at innogy, looks forward to practical collaboration with those involved in the project following months of preparation. "Together with our 45 partners, we are collecting technical knowledge and energy transition expertise, which are without equal in Germany. Broad acceptance of people for the thorough restructuring of the energy system is just as important as the correct technical innovations. With the construction of demonstration facilities and accompanying activities, this is something “Designetz” intends to contribute towards. "Designetz solutions" ought to demonstrate the benefits of energy transition for regions."

An overall system emerges from individual solutions – distribution system has key role

"Designetz" intends to develop and demonstrate model solutions for secure, cost-effective and environmentally friendly energy supply with high proportions of fluctuating energy generation from wind and solar energy. In doing so, "Designetz" condenses individual solutions in an overall system. It should be demonstrated how smart grids with, at times, a supply of 100 % from renewables can guarantee secure and efficient energy supply and which concepts and technologies can be used for this purpose. Local solutions should be connected intelligently in order to satisfy regional and supraregional claims to the energy supply. For reasons of acceptance and in consideration of the local benefits, as much energy as possible and locally feasible will be produced and consumed. Energy will then be transported if there is demand elsewhere which cannot be covered by local production. "Designetz" therefore connects rural production with consumption in urban areas. Innovative information and communication technologies (IKT) and smart utilisation of distribution systems also play a prominent role.

Dr Joachim Schneider, Member of the Grid & Infrastructure Executive Committee, said the following on this: "With Designetz, we are connecting a number of successful, award-winning projects funded by BMWi – ranging from Ampacity to Smart Country. More than 90 percent of renewable energy plants feed their output into the German distribution system. As a result, this infrastructure has developed into the backbone of energy transition."

"Designetz" is part of the BMWi programme "Schaufenster intelligente Energie (SINTEG) – Digitale Agenda für die Energiewende" (Intelligent Energy Showcase (SINTEG) – Digital Agenda for Energy. In large “showcase regions” it aims to develop and demonstrate scalable model solutions for an environmentally friendly, secure and affordable energy supply based on large-scale use of renewables. The focus is on smart interconnectivity between production and consumption as well as the use of innovative grid technologies and operating concepts. The solutions found will then serve as a model for widespread implementation.

The BMWi is contributing over EUR 200 million to the five showcases. In combination with the additional investments companies are making, over EUR 500 million will be invested in the digitalisation of the energy sector. This makes SINTEG an important contributor to the digitalisation of the energy transition. Over 200 companies and other players from such areas as science and research are also participating in the SINTEG showcases.

As of 19 December, innogy will be included in the second most important German stock index

Inclusion confirms innogy’s financial strength

innogy SE welcomes its inclusion in the MDAX stock index of the Deutsche Börse, which becomes effective as of 19 December 2016. The announcement was made by Deutsche Börse yesterday evening after reviewing the index. Thus the shares of innogy, which made its successful debut on the stock market as recently as the beginning of October, will be included in the second most important German stock index before the end of the year.

The MDAX is made up of the 50 largest stock-market listed companies in Germany below the DAX. Based on fixed inclusion criteria, Deutsche Börse decides on the composition of the share index. In addition to a listing in the Prime Standard and a free float of at least ten per cent, other decisive factors include free float market capitalisation as well as trading volume.

Since 7 October 2016, innogy’s shares trade on the Prime Standard sub-segment of the Frankfurt Stock Exchange under International Securities Identification Number (ISIN) DE000A2AADD2, securities identification number (WKN) A2AADD and the ticker symbol IGY. 23.2 per cent of innogy’s shares are free floating.

The business performance of innogy SE, headquartered in Essen, which has been listed on the stock market since 7 October 2016, is fully on track. The company confirms its forecast for 2016 and 2017.

Bernhard Günther, Chief Financial Officer of innogy SE: “For us, 2016 is a year of transition and of extraordinarily intensive work. October marked a very successful IPO, and today, we are presenting very solid figures for the first nine months of 2016. The results are in line with expectations and we can confirm the forecast for 2016 and 2017.”

innogy, which is the largest energy company in Germany in terms of market capitalisation, achieved external revenue of around EUR 31.5 billion in the first nine months. EBITDA was EUR 2,919 million and the operating result was EUR 1,842 million. Earnings were therefore, as expected, 7 per cent and 15 per cent below the previous year’s levels respectively. The previous year had been affected by positive one-off effects. Adjusted net income reached EUR 671 million. As this figure was calculated for the first time based on the final capital structure, no figure is reported for the previous year. As at 30 September 2016, innogy already had 40,624 employees. The transfer of personnel from RWE to innogy has therefore already been largely completed.

Results marked by high expenditure on grids and absence of positive one-off effects – Restructuring in UK continues to make progress

The results of the first nine months of 2016 were particularly affected by additional expenditure on maintenance of grid infrastructure, especially in Germany. In addition, the previous year’s result had included a high one-off earnings item in connection with the first-time full consolidation of Slovak energy utility VSE as well as earnings from the sale of the network infrastructure of the Gwynt y Môr offshore wind farm. The stronger decline in the operating result compared with that of EBITDA is exclusively attributable to an increase in operating depreciation, which is in part due to the first full-year full consolidation of VSE. The continued expansion of renewables also contributed to the increase in depreciation.

The fact that Gwynt y Môr and Nordsee Ost have been constantly online at full capacity for the first time this year had a positive effect on the result. innogy also benefited from a rise in transit volumes in its Czech gas distribution network. Another positive effect came from the fast progress made in the comprehensive restructuring programme initiated for the UK retail business.

Regarding the UK retail business, Günther said: “Getting it right for customers is the pre-requisite for the future of our business – especially in such a difficult market environment as the UK. I am therefore delighted that we have improved significantly. This time last year we were bottom of the “big six utilities” in terms of complaints received from our customers. Now we receive the third-lowest number of customer complaints. This is a positive development, but of course we want to continue to become even better.”

More power from renewables

In the first three quarters of the year, innogy generated a total of 7.7 billion kilowatt hours of power from renewables, up 5 per cent year on year.

In the first nine months, innogy’s capital expenditure was 4 per cent down on the previous year’s period, at EUR 1,108 million. This was primarily attributable to the Renewables Division, the capital spending of which halved. The determining factor here was the completion of offshore wind farms Nordsee Ost and Gwynt y Môr in 2015. On the other hand, investment in grid infrastructure increased slightly. Around two thirds of capital expenditure was invested in the Grid & Infrastructure Division.

Net debt not comparable to previous year’s figure

As of 30 September 2016, innogy’s net debt totalled EUR 18.7 billion, considerably higher than the figure reported on 31 December 2015 (EUR 6.7 billion). The substantial rise in net debt is due to the reorganisation of the RWE Group: the desired capital structure of innogy was not established until the period under review. The figures for net debt reported in 2015 are therefore of limited informational value. In addition, the development of market interest rates made it necessary to increase provisions for pensions compared to the end of 2015. As the IPO was not launched until after completion of the third quarter, the resulting proceeds are not yet included in these figures.

The target debt factor is around 4.0, i.e. net debt should not exceed around four times EBITDA.

Just a few weeks after its IPO, on 31 October 2016, innogy received its first independent rating from rating agency Fitch. Fitch assigned innogy SE a BBB+ strong investment grade rating with a stable outlook. In addition, innogy’s senior unsecured rating, which is relevant to senior bonds, was rated even a notch higher, at A-. Bonds with a short tenure received an F2 rating grade.

Outlook for 2016 and 2017 confirmed – Outlook for adjusted net income

innogy confirms the outlook published on 1 August 2016 for the company’s anticipated EBITDAin fiscal 2016 and 2017. For 2016, innogy continues to expect EBITDA of EUR 4.1 to EUR 4.4 billion, and EBITDA of EUR 4.3 to EUR 4.7 billion is anticipated for 2017. A forecast for adjusted net income is provided for the first time for 2016. This is expected to be in the order of EUR 1.1 billion. Adjusted net income is the basis for the dividend payment. The payout ratio is between 70 per cent and 80 per cent of adjusted net income.

Legal disclaimer
This page contains forward-looking statements. These statements are based on the current views, expectations, assumptions and information of the management, and are based on information currently available to the management. Forward-looking statements shall not be construed as a promise for the materialization of future results and developments and involve known and unknown risks and uncertainties. Actual results, performance or events may differ materially from those described in such statements due to, among other things, changes in the general economic and competitive environment, risks associated with capital markets, currency exchange rate fluctuations, changes in international and national laws and regulations, in particular with respect to tax laws and regulations, affecting the Company, and other factors. Neither the Company nor any of its affiliates assumes any obligations to update any forward-looking statements.

The rating agency Fitch has assigned innogy SE a strong investment grade rating of BBB+ with a stable outlook, a senior unsecured rating of A- and a short-term rating of F2.

innogy, Germany´s largest utility by market capitalisation was listed on the Frankfurt Stock Exchange earlier this month. According to Fitch the assigned ratings reflect innogy’s strong business profile with the majority of earnings from regulated networks as well as a large proportion of quasi regulated earnings from renewables generation.

Bernhard Günther, Chief Financial Officer of innogy SE: “Just a few weeks after the successful IPO, I am pleased about innogy’s first stand-alone credit rating. This strong investment grade rating will foster the establishment of innogy as an important issuer in the Debt Capital Market.”

Important Note

This release contains forward-looking statements. These statements are based on the current views, expectations, assumptions and information of the management, and are based on information currently available to the management. Forward-looking statements shall not be construed as a promise for the materialization of future results and developments and involve known and unknown risks and uncertainties. Actual results, performance or events may differ materially from those described in such statements due to, among other things, changes in the general economic and competitive environment, risks associated with capital markets, currency exchange rate fluctuations, changes in international and national laws and regulations, in particular with respect to tax laws and regulations, affecting the Company, and other factors. Neither the Company nor any of its affiliates assumes any obligations to update any forward-looking statements.

]]>Company,Unternehmen,PressMon, 31 Oct 2016 18:08:30 +0100Strategic partnership between innogy and Port of Duisburghttp://news.innogy.com/strategic-partnership-between-innogy-and-port-of-duisburg/
http://news.innogy.com/strategic-partnership-between-innogy-and-port-of-duisburg/•Expansion of Port of Duisburg to form “hub of the energy market transformation”Together for the energy market transformation – that’s the slogan for a future-oriented partnership entered into by innogy SE and the duisport Group. As leading companies in the energy industry and logistics, innogy and duisport want to develop a “hub for the energy market transformation” in the port of Duisburg, and test out new methods of saving energy and using renewables in logistics and industry. The CEOs of both companies, Peter Terium for innogy and Erich Staake for duisport, have signed an agreement to this end.

The goal is to develop an integrated energy and logistics strategy for the port of Duisburg: both companies are looking at an innovative and decentralised energy supply system on-site, the use of ultra-modern solar solutions and new electric-powered transport systems. innogy CEO Peter Terium: “The partnership with Duisburg’s port company is of particular importance to us, since transport and logistics are key sectors for future economic growth and successful climate protection. With the energy market transformation, these sectors are facing fundamental changes. Here at innogy, we want to be part of the transformation process and work with Europe’s largest inland harbour to show that industry and sustainable energy strategies go hand in hand. For me, that’s ‘innovation – made in the Ruhr area’.”

The port of Duisburg has the ideal conditions in place: this year, the 300th anniversary of the port’s establishment, duisport has taken on the role of central logistics hub for central Europe. “I am very happy to know we have the innovative skills of a leading European energy company by our side in the form of innogy,” comments duisport CEO Erich Staake. “Together we have the strength to create new impetus for the European energy market transformation based on North Rhine-Westphalia as a centre for the energy industry and logistics." Logistical transport chains are already being optimised at the port of Duisburg, and shipping, rail and road systems are being intelligently networked. This enables industry and logistics to structure goods flows economically, efficiently and with more sparing use of resources. Partners and customers of the port company all benefit from this strategy of networked logistics focused on sustainability, including 300 logistics-related companies located there. Every year these companies generate added value in the order of €3 billion.

Cooperation between these entities revolves around the fields of energy supply, mobility and goods transport, with the mainstay being the testing and use of innovative, decentralised energy-extraction technologies. For testing purposes, ultra-light, flexible, organic solar films will be installed in the port of Duisburg, made by Dresden-based company Heliatek, in which innogy has a shareholding. The films can be installed on hall roofs and façades, and also on logistics containers – all locations where conventional PV modules would be too heavy. This is where the solar films can prove their suitability for practical use in

logistics and industry, and the first customer applications will provide support for their market launch at the same time.

Another focus for testing will be to determine how to optimise the supply of power to ships docked in port, e.g. using locally generated electricity where possible, to minimise the use of diesel in the port. Transport capacities in the port and at other locations in the region will also be gradually converted to electric mobility. And lastly, goods transport will be refined toward the use of alternative primary energy sources and logistics for the system components needed for the energy market transformation.

A new departure into a green energy future – innogy officially launched on 1 September 2016. Now that the company has been renamed, ‘RWE International SE’ will present to its customers and business partners as ‘innogy SE’ from today onwards. CEO Peter Terium: “We are innogy and we’re building the energy company of the future – this is not simply a publicity claim, it’s a promise. We want to be trailblazers for the energy market of the future. With renewable energy, smart grids and innovative solutions for our customers, we want to set standards for the energy transition and far beyond. This is our strategy and we’re determined to implement it.”

The renaming of the company is a further step towards implementing innogy’s new corporate structure. “We have already started to make important decisions for our future growth”, the CEO continued. For example, just a few days ago innogy announced its takeover of German solar and battery specialist BELECTRIC Solar & Battery Holding GmbH (see press release from 29 August 2016). With this move, innogy will immediately become an international player on the market for utility-scale photovoltaic power plants and battery storage technologies. BELECTRIC will not only develop projects and plants for innogy, it will also continue to foster its external customer business. Terium: “This is our contribution towards developing the decentralised, regenerative energy system of the future, in line with our strategy.”

Another example of pioneering technologies is innogy’s shareholding in Dresden-based company Heliatek. This company’s organic, extremely light and flexible solar foils can be integrated elegantly into building facades or laminated onto glass surfaces, thus creating entirely new application opportunities in the solar industry. The unique and multiple-award-winning product features have already been tried and tested in a number of partnerships and initial applications. The next step the company has planned is to expand its production capacity in Dresden to up to one million square metres per year. Terium: “Our early involvement allows us to help shape the market for one of the most disruptive innovations in the area of renewables.”

Retail is also entering the market with new offerings: for example, innogy is launching the first ‘Strom Jahresflat’ (yearly electricity flat-rate) in Germany. The new product, which requires no subsequent payments, feeds entirely off renewable energy sources. The market launch for the ‘Strom Jahresflat’ is scheduled for October 2016.

Although innogy, with around 40,000 employees and a turnover of around €46 billion in 2015, is by no means a start-up company, new paths and mindsets are necessary. The new strategy, ideas and products are the result of an intensive process that began with a simple question: “What would you do if you could start again?”

Advertising placards all over Germany have been displaying this question for the past two weeks. And it’s not only the industry media that have been asking themselves what it’s all about. CEO Peter Terium: “This campaign shows very clearly what innogy stands for: for our ‘restart’we need precisely those things that every individual has to discover within themselves if they want to implement change. You have to be brave, unafraid of change and see more opportunities than constraints.”

The first part of the campaign was already a complete success. On facebook alone, over 85,000 people answered the restart question, shared it with friends or were inspired to start again. The TV advertisement reached 80 percent of the population between the ages of 18 and 39. Famous personalities such as ‘Tatort’ star Wotan Wilke Möring and the band The BossHoss, as well as ordinary people gave thought-inspiring descriptions on video about their personal stories of starting again.

The second part of the campaign will now be launched with TV ads, promotional placards all over Germany and a large-scale internet campaign. The launch campaign answers the question of what the new beginning means for the company. CEO Terium: “With innogy, we have the unique opportunity to start again as a large energy company. We show how we want to shape our new beginning and what we stand for as a company, i.e. renewables, intelligent grids, smart use of energy, clever service ideas and technological progress that benefits people and is fun to be part of.”

At the same time as the marketing campaign, innogy is also launching its revamped website. From now on all customer communication will be channelled through the new address innogy.com. Here, customers can access and process everything to do with their contract in just a few clicks. In addition, they will find interesting and useful information on electricity, natural gas, energy consulting and technology on the website.

From a legal standpoint, nothing will change for RWE International SE’s customers. They will continue to benefit from innovative products and services and can rely on the experience of an established European energy company. The name change from RWE International SE to innogy SE will take effect on 1 September, initially only in Germany. In Poland the name will change on 2 September, in the Czech Republic and Slovakia on 1 October 2016. Further countries will follow in 2017 and the subsequent years.

Portfolio enhanced and expanded in the areas of utility-scale photovoltaic power plants and battery storage solutions

Transaction intended to be closed at the beginning of 2017

innogy SE is setting the course for future growth and will take over German solar and battery specialist BELECTRIC Solar & Battery Holding GmbH. The company is part of the BELECTRIC Group. innogy and BELECTRIC Holding GmbH have signed a share purchase agreement. The parties have agreed a purchase price in a high double-digit million euro range. The transaction is subject to approval by the anti-trust authorities and reorganizational measures. Closing of the transaction is intended to take place in early 2017. innogy SE is temporarily called RWE International SE until the beginning of September 2016.

The takeover of BELECTRIC Solar & Battery instantly makes innogy an international player on the market for utility-scale photovoltaic power plants and battery storage technologies, which is entirely in line with innogy’s corporate strategy: these technologies make an important contribution to the expansion of the decentralised, renewable energy system of the future.

BELECTRIC Solar & Battery is engaged in the design, installation, operation and maintenance of utility-scale photovoltaic plants. It is also active in the field of battery storage systems and develops among others turn-key large-scale battery storage solutions. Technology products are developed and manufactured at the company’s own plants in Germany and India. With over 15 years of experience, BELECTRIC has built more than 280 utility-scale photovoltaic plants and roof-top systems with a total installed capacity of more than 1.5 gigawatts peak (GWp). In addition, BELECTRIC is responsible for the operation and maintenance of solar plants with a total output capacity of more than 1.0 GWp. The regional focus of this business area is on Europe, the growth markets of the MENA region (Middle East North Africa) as well as India, South America and USA. In 2015, the adjusted EBITDA of BELECTRIC Solar & Battery was in a low double-digit million euro range.

Peter Terium, Chief Executive Officer of RWE AG and innogy SE: “With innogy we are creating the innovative, decentralised and sustainable energy company of the future. The agreed acquisition of BELECTRIC Solar & Battery fits this strategic orientation perfectly. Smart battery storage solutions make generating electricity from renewables both more efficient and more secure. In BELECTRIC we are acquiring an innovative company that has built up an international strong market position. We are now combining our complementary strengths and creating additional impetus to successfully implement our projects in Europe and our growth regions – the whole will be greater than the sum of its parts.”

Bernhard Beck, one of the pioneers of the German solar industry and Executive Chairman of BELECTRIC Holding GmbH: “With innogy, an established European energy company is acquiring our trail-blazing business for solar energy and battery solutions. Thereby, the focus is further on sustainable business development for the benefit of our customers and employees.”“In acquiring BELECTRIC, we are bolstering our skills in the area of renewables and acquiring extensive expertise as well as many years of operational experience with solar technology. The experienced team at BELECTRIC will contribute to taking innogy forward with large-scale solar projects,” says Hans Bünting, Chief Operating Officer Renewables of innogy SE. “innogy’s project pipeline in the area of solar aligns very well with the projects BELECTRIC wants to realise in the next few years”, Bünting added.

Name stands for innovation and technology in the energy market of the future

Parent company to stay with strong RWE brand

It’s curtains up for innogy – colourful, cheerful and innovative. This is the new brand of the RWE subsidiary, which pools the German and international Renewables, Grid & Infrastructure and Retail business. CEO Peter Terium: “The energy market of the future is green, decentralised and digital – that’s what our new brand stands for. innogy is colourful, flexible, full of energy and creative ideas. We are restructuring the Group as we want to be trailblazers for a sustainable and modern energy supply – with a new image, strong colours and new wind in our sails. This is innogy.”

The name itself is made up of the words “innovation” and “energy” and “technology”. The logo is a symbol of identification and is made up of an “i” for innogy and the name itself. Terium: “I liked the concept a lot from the outset. The very first time I saw our new brand image, I loved it. Our very colourful and dynamic brand is rather atypical for the energy industry. But that makes us unique.”

When developing the new brand the company focused in particular on versatility: the new “i” is animated in films and presentations and its agility stands for flexibility. In line with this, there is not only one specific brand colour – the brand will be presented in a number of very different colour environments. Terium: “The brand has as many facets as the dynamic surroundings in which we move today. Markets, players and game rules are changing. Our future competitors could be Tesla, Google and Apple. We want to have a strong say in this environment and be a leading player – with flexibility, innovative strength and creativity. That’s what innogy stands for.”

CEO Peter Terium and COO Retail Martin Herrmann have already presented the new brand to the in total some 60,000 employees of the new subsidiary and RWE AG in the form of a Group-wide internal video chat. In addition, to present the extraordinary colour landscape of the new brand, innogy lit up such large-scale surfaces as the Grugahall in Essen yesterday. (Note for media representatives: the second illumination will take place this evening, 29 June 2016 just after sundown). The RWE participants in the sixth company run in Essen this evening will also be wearing the new brand on their running shirts. Brand launch events are also planned at other German locations and internationally. The first larger-scale international event is planned for the International Film Festival in Karlsbad at the beginning of July.

Within the RWE Group, the name innogy previously stood solely for the business area of Renewables. In future, the brand will also represent the business areas of Grid & Infrastructure and Retail in Germany and internationally. In addition, the name will be given a new and modern interpretation. A successful combination of the established and the new, according to Terium: “We put a lot of work into the consideration of a number of very different names. However, in the end we always came back to the realisation that innogy expresses what we want to stand for – for innovation and technology in the energy sector. We are absolutely convinced that innogy was the right choice.”

After the official launch and the initial presentation today, the formal renaming will take place on 1 September 2016. Then the company as well as its products and services will be rebranded. Until then, the subsidiary will continue to bear the temporary name RWE International SE. The brand will be launched according to countries and regions: in Germany and the Czech Republic, the brand will be rolled out on 1 September, in Poland on 2 September 2016. Further countries will follow gradually.

RWE AG will stay with its strong RWE brand. This stands for a long and proud tradition of engineering expertise, security of supply, reliability and partnership.